(Updated: Amends first paragraph to reflect the passing of the draft framework since publication.)
Australia’s long-awaited crypto regulatory framework has passed, bringing digital
asset firms under the country’s existing financial services laws for the first time.
The legislation has been simmering for several years and comes significantly later than in other jurisdictions such as the UAE, Japan and Hong Kong, which have already implemented comprehensive crypto rules.
Commenting on the cusp of the development, Kate Cooper, CEO of OKX Australia, said she believes the delayed timeline could ultimately benefit the country. She argues that Australian regulators have had time to study what has worked and what has not in other markets before finalising their own approach.
"It’s been a long time coming and the benefit of being kind of late to the party is that the country’s treasury has been able to see what’s working and what isn’t working in other jurisdictions and reviewed it in consultation," Cooper told Sandmark.
Cooper has more than seven years of experience in Australia’s crypto sector. Before joining OKX Australia, she served as CEO of crypto custodian Zodia’s Australian unit and led digital asset initiatives at National Australia Bank (NAB). She also co-leads the Digital Economy Council of Australia.
Cooper suggested the new rules could serve as a tipping point for institutional adoption. Australia’s superannuation sector manages more than A$3.5 trillion (US$2.4 trillion) in assets, one of the largest retirement savings pools in the world.
"The passing of the legislation could be a tipping point, which could see Australia potentially leapfrog some other jurisdictions because, of course, we have significant capital pools and superannuation amongst other areas," she added.
OKX Australia launched a dedicated crypto platform for retirement funds last year and has held early-stage discussions with superannuation funds on custody services.
The exchange is also focusing on high-net-worth individuals and family offices. Cooper said OKX aims to offer these clients personal service rather than faceless offshore support.
