Key Takeaways:
Coinbase secured an Australian Financial Services License (AFSL), clearing the path for the exchange to offer both crypto derivatives and equity trading to its Australian users for the first time. The license positions Coinbase ahead of a new digital asset framework that passed parliament on April 1.
"We’re going to compete with traditional financial services on stock trading, payments and other TradFi products with the speed and execution of crypto," John O'Loghlen, regional managing director for APAC at Coinbase, said.
Holding an AFSL requires Coinbase to adhere to the same consumer protection and governance standards as traditional financial firms. This development precedes Australia's formal crypto licensing regime, the Corporations Amendment (Digital Assets Framework) Bill 2025, which is set to become law 12 months after receiving royal assent. The move taps into a growing market where an estimated 33% of Australians already have exposure to cryptocurrency, according to a survey by Independent Reserve.
The license provides Coinbase a regulated path to compete for a piece of Australia’s A$4.5 trillion ($3.1 trillion) superannuation retirement savings pool. In September, both Coinbase and its competitor OKX introduced services for self-managed superannuation funds, signaling growing institutional interest in the region. Coinbase also confirmed it has been expanding its local team with hires in legal and compliance.
Coinbase's licensing success contrasts with recent enforcement actions in the country, highlighting a maturing regulatory environment. In a separate case, the local unit of Binance was fined $6.9 million for client onboarding failures, demonstrating that Australian regulators are actively enforcing compliance standards. O'Loghlen noted that "thoughtful regulation is good for customers, good for the industry and good for Australia's ambition to be a leading digital economy."
This article is for informational purposes only and does not constitute investment advice.
