In a significant move to regulate the rapidly evolving digital asset sector, Australia’s government has proposed a comprehensive legislative framework aimed at bringing crypto platforms under the purview of existing financial services laws. The legislation, introduced by Assistant Treasurer Daniel Mulino, seeks to establish clearer operational standards and safeguard measures for crypto companies operating within the country.
Key Takeaways
- •The Corporations Amendment (Digital Assets Framework) Bill 2025 requires crypto exchanges and custody providers to secure an Australian Financial Services License (AFSL).
- •The legislation addresses current gaps, particularly the lack of safeguards for crypto assets held for clients, reducing risks of scams and frauds similar to FTX.
- •It introduces two new license categories: digital asset platform and tokenized custody platform, with registration handled by the Australian Securities and Investments Commission.
- •Exemptions are available for smaller firms with less than 10 million AUD in transaction volume annually, offering an 18-month transition period.
This legislative effort aligns with global trends toward stricter crypto regulation and investor protection, positioning Australia as a progressive financial hub.
Legislative Details and Industry Response
Assistant Treasurer Mulino emphasized that Australia must keep pace with the global shift as digital assets reshape financial markets. During a speech to a crypto industry conference, he noted, “Across the world, digital assets are reshaping finance. Australia must keep pace. If we get this right, we can attract investment, create jobs, and position our financial system as a leader in innovation.” He also referenced the consultation process launched in September, which garnered supportive feedback but highlighted the need for further clarity.
The legislation focuses primarily on companies holding crypto for clients, rather than the underlying technology, making it adaptable to emerging tokenization and digital services. Currently, many crypto platforms facilitate trading but lack the required licensing for assets held on behalf of clients. The new bill aims to rectify this by establishing clear standards and licensing requirements, ensuring customer assets are protected and managed responsibly.
Proposed Licensing and Safeguards
The bill amends existing legislation to create licensing categories for digital asset platforms and tokenized custody platforms. These will require an AFSL and will be subject to minimum standards for transactions, asset holding, and transparency. Platforms will also need to provide clients with clear information about services, fees, and risks.
Notably, small-scale companies with less than 10 million AUD in annual transaction volume, or those whose crypto activities are incidental to their main operations, are exempt from licensing requirements. The legislation provides an 18-month grace period, allowing businesses time to comply without immediate penalties.
With the bill expected to pass the House swiftly, it marks a significant step towards a regulated and secure crypto environment in Australia. It remains uncertain whether support from the Senate will be sufficient for passage, but the legislation underscores the government’s commitment to fostering innovation while ensuring investor protection.