TL;DR
- Australia is pushing a bill that requires crypto platforms and tokenized custody providers to obtain a financial license to operate.
- The framework sets custody, governance, disclosure and conduct standards under ASIC supervision, and brings any entity that advises on or intermediates crypto transactions into the licensing regime.
- The bill includes exemptions for small operators and establishes an 18-month transition period for companies to meet the new requirements.
Australia is moving ahead with a structural overhaul of its crypto regulation, preparing exchanges and custodians to operate under the same rules that govern the traditional financial system.
Parliament has received the Corporations Amendment (Digital Assets Framework) Bill 2025, which requires digital asset platforms and tokenized custody services to obtain a financial services license. The Treasury described it as the core of a strategy designed to organise a sector with massive adoption and growing risks.
What Does the New Framework Propose?
Assistant Treasurer Daniel Mulino explained that the country needs a framework that protects millions of users while supporting innovation. According to the government, the current regime allows companies to handle large volumes of crypto without effective safeguards, exposing clients to failures similar to those that brought down FTX. The bill seeks to close legal gaps and impose consistent obligations on activities that already function as financial services, even if they run on crypto technology.
The proposal creates two formal categories: one for digital asset platforms and another for tokenized custody services. Both must operate efficiently, honestly and fairly. They will be required to disclose how they store assets, maintain strong governance and risk controls, avoid misleading practices, and offer dispute-resolution and compensation mechanisms. ASIC will oversee these requirements and enforce minimum standards for processing, settlement and custody. Companies must also provide detailed disclosure documents explaining services, fees and risks.
Australia Aims to Support the Expansion of Tokenization
The regulation expands the legal reach of the sector. Any entity that advises on, trades or intermediates crypto transactions will fall under mandatory licensing. This replaces the current system, which only requires AUSTRAC registration and AML/KYC compliance. Treasury argues that integrating the sector into the financial regime is necessary to support the growth of tokenization, a shift that could generate up to A$24 billion annually in efficiency gains and cost savings, according to official estimates.
The bill provides exemptions for small operators, including those handling less than A$10 million in annual transactions or holding minimal balances per client. Businesses that use crypto only incidentally to their primary non-financial activities are also excluded. The government set an 18-month window for companies to obtain their license without immediate penalties. With Labor’s strong majority in the House of Representatives, the bill now moves to the Senate, where the government will need additional support to complete the reform
