AML law changes - AUSTRAC weakening regulations, page-26

It appears to me that the encumbents closed ranks sometime ago and have convinced the decision making authorities that the disruptor is too disruptive for the Aus market and needs to be stopped or at least slowed down to maintain public confidence in the Aus market. How can you suspend the Big 4 and A_S_X at the same time. It would shatter confidence in the Aus market. So the encumbents protection continues (too big to fail?)
Ironically it is not the disruptor that would cause the confidence crisis. IMO the disruptor is the solution and the way forward