This week, we have chosen three news items which show how differing attitudes to crypto regulation can impact the industry, highlight the potential influence on national governments’ policies, and show how crypto exchanges respond to them. Crypto regulators, compliance officers, investors, and investigators should all take heed of these developments.
Firstly, we head down under, where the Australian Government has rejected the establishment of a national cryptocurrency reserve, unlike its major ally, the US, which is embracing the move.
The next stop is Europe, where the crypto exchange giant, Binance, is delisting nine stablecoins being used in the EU to ensure compliance to MiCA regulations.
Finally, we alight in the US, where the crypto exchange, Coinbase, has filed a public access information request to the Securities and Exchange Commission (SEC) about the cost and conduct of its defunct Crypto Assets and Cyber Unit.
To find out more about these stories, read on.
Australian Government opts out of national crypto reserve proposal
The Australian government has announced that it will not pursue the establishment of a national cryptocurrency reserve. Instead, it will focus on implementing a tightly controlled crypto regime which makes consumer protection and the regulation of digital asset platforms its top priorities.
A National Treasury spokesperson said that “the [current Labor Party] government has consulted on our proposed framework to build a fit-for-purpose digital asset regulatory regime, and we continue to work closely with industry.”
The decision has attracted criticism from some in Australia’s crypto industry. BTC Markets crypto exchange CEO, Caroline Bowler, believes that excessive regulatory control fundamentally undermines cryptocurrencies, noting that “one of the core principles of cryptocurrency is its ability to exist outside of government influence.”
In contrast to the Australian government’s position, US President Donald Trump built on his January 2025 Exec`utive Order 14178, which proposed the crypto stockpile, on March 2, when he named five crypto tokens as part of the reserve fund. The markets responded to the announcement in kind, with Cardano (up 63%), XRP (28%), Solana (20%), Ethereum (11%), and Bitcoin (8%) all gaining ground in value.
Meanwhile, the Crypto firm, Zodia Custody, announced on LinkedIn that it now supports the AUSD stablecoin, which is pegged at 1:1 with the US Dollar.
We have seen before that Australia takes the protection of its financial system very seriously. While the US’s advancing integration of digital assets into its economy should also be welcomed, compliance teams must remain flexible, engage proactively with regulators, and align business models with the prevailing regulatory climate in each market.
Find out more about this story at Coinspeaker.
Binance delists nine stablecoins in the EU to comply with MiCA regulations
Binance, one of the world’s largest crypto exchanges, announced on March 3, 2024, that it will delist nine non-MiCA-compliant stablecoins on March 31.
The move came in the wake of the European Securities and Markets Authority’s (ESMA) updated guidance on stablecoins in January, and quelled rumors that the exchange could be up for sale.
Binance emphasized that only ‘fellow Binancians’ in the European Economic Area (EEA) will be affected, and listed the impacted digital assets as USDT, FDUSD, TUSD, USDP, DAI, AEUR, UST, USTC and PAXG.
Customers can still trade MiCA-compliant stablecoins such as USDC and EURI after the cut-off date. The exchange encouraged EEA customers to swap impacted stablecoins to either of these, or Euros, before the end of March.
Binance’s swift action demonstrates that crypto regulation is no longer theoretical—it has immediate operational consequences. Compliance teams should prepare for tighter rules across all jurisdictions and take a forward-thinking approach to regulatory adaptation
Find out more about this story at Financemagnates.
Coinbase seeks SEC information on costs and conduct of disbanded crypto unit
On March 4, 2024, Coinbase submitted a Freedom of Information Act (FOIA) request to the Securities and Exchange Commission (SEC). The request aims to reveal the costs and resources used by the regulator’s now-defunct Crypto Assets and Cyber Unit.
Coinbase’s legal head, Paul Grewel, took to X on the same day to state that the SEC unit’s “regulation-by-enforcement approach cost Americans innovation, global leadership, and jobs,” and asked, “how much did it cost in taxpayer dollars?”
Amongst the fine print of the FOIA request were stipulations for:
- The number of investigative and enforcement activities the unit carried out from April 17, 2021, until January 20, 2025, when the SEC’s crypto hardliner and head, Gary Gessler, retired as President Trump took office.
- The number of employees and contractors who worked on those actions, for how many hours and at what cost, as well as information on the unit’s budget.
The Crypto Assets and Cyber Unit was formed in 2017 as an enforcement wing of the SEC and disbanded on February 20, 2025, under President Trump, to be replaced by the Cyber and Emerging Technologies Unit (CETU). Since Trump’s perceived pro-crypto presidency started, the SEC has dropped or desisted from various legal actions against crypto exchanges, including Coinbase and Kraken.
This precarious balancing act illustrates the tightrope that all crypto industry stakeholders must walk. While authorities must safeguard the financial system, crypto exchanges must be able to innovate to grow. It is neither clear whether the legal actions taken by the disbanded unit would have succeeded, nor whether the FOIA request is still necessary. However, transparency is a cornerstone of not just our industry, but of democracy itself.
Find out more about this story at Cointelegraph.
