Regulation Does Not Always Stop Innovation.
When people hear about new regulations, the first reaction is often concern.
Will it slow innovation? Will compliance become too expensive? Will good emerging-technology projects move somewhere else?
I understand these questions. However, in the case of Australia’s anti-money laundering and counter-terrorism financing reforms, I believe we should also look at the other side of the story.
From 1 July 2026, newly regulated businesses in sectors including real estate, legal services, and accounting became subject to expanded AML/CTF obligations. Real estate professionals providing designated services must enrol with AUSTRAC, establish an AML/CTF program, conduct customer due diligence, keep appropriate records and report suspicious matters.
At first glance, this may sound like another layer of administration.
For me, however, it may also represent an important step towards making property tokenisation more credible in Australia.
Property is one of the world’s largest asset classes, but it is also relatively illiquid, expensive to access and difficult to divide. Real-world asset tokenisation may potentially allow interests connected to a property to be represented digitally, divided into smaller units and managed through blockchain-enabled infrastructure.
This does not mean simply putting a building “on the blockchain.”
The legal rights, ownership structure, investor protections, financial arrangements, and responsibilities of every participant must remain clear. Technology cannot replace the law, proper governance, or professional accountability.
This is exactly why compliance matters.
AML compliance is only one part of the complete picture. Depending on how a property token is structured, corporate law, financial services licensing, investor protection, taxation, custody, and property law may also apply.
What Serious Investors Need to See.
Serious investors will not participate only because a tokenisation platform looks innovative. They will want to know who controls the asset, how investors are identified, how funds are handled, what rights the token represents, and what happens when something goes wrong.
Australia’s stronger AML framework may help create clearer expectations around these questions.
Customer due diligence requires businesses to establish important information about their customers and beneficial owners. Enhanced checks may also include establishing the source of funds or wealth when the level of risk requires it.
For compliant tokenisation, these processes should not be treated as an enemy.
They may become part of the foundation.
Compliance and Blockchain Must Work Together.
Blockchain is frequently associated with transparency, immutable records, and traceability. However, blockchain alone does not guarantee that participants are legitimate or that the assets and funds entering a system come from appropriate sources.
Compliance and technology must work together.
Connecting Regulation with Real-World PropTech Activity.
For the past few years, I have been following the development of real-world asset tokenisation with special interest, particularly projects connected with property. As a Blocksquare Ambassador, I have been learning how compliant tokenisation models may improve liquidity, broaden access to investment, and create new opportunities for property owners. This experience has also shown me that technology alone is not enough. Successful tokenisation requires legal clarity, regulatory compliance, trusted partners, and a genuine asset with a clear business purpose.
I am actively following the initiatives and activities of PropTech Hub WA, where practical innovation connects with the real property industry in Western Australia. I was very honoured to receive the titles of PropTech Champion of the Year 2025 and Members’ Choice Innovator of the Year 2026.
For me, these awards are not only personal recognition. They are motivated to continue learning, participating, and supporting responsible innovation within the Western Australian PropTech ecosystem.
Through this role, my interest is not in creating tokens only because the technology allows us to do so. I am interested in identifying where tokenisation can solve a genuine problem. I mean, improving liquidity, creating new investment access, or helping owners unlock value from completed, income-producing assets.
From Industry Collaboration to Practical RWA Tokenisation.
Combining real-world initiatives such as PropTech Hub WA with serious attention to regulatory compliance may soon lead to practical RWA tokenisation opportunities involving real estate and other assets.
It will not happen through hype alone.
It will require cooperation between property professionals, technology providers, lawyers, accountants, regulators, developers, and investors. It will require realistic projects, transparent structures, and a willingness to learn from early implementations.
Credibility Must Come Before Hype.
Australia’s AML reforms may increase the amount of work required, especially during the transition. But they may also help separate responsible projects from poorly designed or speculative ones.
In my opinion, that could make the Australian tokenisation market only stronger, not weaker.
Fingers crossed, while working and learning harder. The opportunity is real, but credibility must come first.
Cheers, The Author.
Acknowledgement:
My sincere thanks to Cullum Ashton, the members of PropTech Hub WA who voted for me and Spektrumlab Pty Ltd, and Cygnet West for this important and meaningful award. I truly appreciate the recognition and the continued support of Western Australia’s PropTech community.
Cheers,
Jacek Korneluk