In light of the recent FTX cryptocurrency exchange debacle, the Australian Government has announced its intentions to improve the regulatory framework within which crypto asset service providers operate. The decision sends shockwaves into the global crypto and blockchain industry. This article analyses the potential regulatory framework that crypto, web3 and blockchain-based businesses must consider. Further, we will refer to the key recommendations of Australia per the Technology Financial Centre Senate select committee report published in 2021 (Committee Report).
Background
To recap, the Committee Report and the (previous) Australian Government's Consultation Paper of March 2022 pressed the need for licensing and custody requirements to be imposed on crypto asset secondary service providers. This includes cryptocurrency exchanges, such as FTX. The Government has since embarked on a token mapping exercise to assist with the creation of standardised terminology for the
