State regulating NewSpace launch activity risk missing out on securing their place in the global market. Australia provides a useful case study when considering the significance of national space policy and the market realities in the development of domestic regulation governing launch services. When domestic regulation doesn’t properly consider a policy position or the nature of the market the law can restrict the development of industry. The present paper discusses Australia’s history in commercial space launch activities from a policy perspective and an operational perspective. When a state understands NewSpace activities in the context of how the domestic industry fits into the global market, a policy ambition can be developed which, in turn should feed into the creation and implementation of a domestic regulatory framework. Through this process, a state may facilitate its domestic industry to meet the global demand for innovative launch capabilities in a safe manner which complies with a state’s international obligations.