The government aims to attract investment, create jobs, and position the financial system as a leader in innovation by getting the regulatory framework right.
Australia Crypto News
Assistant Treasurer Daniel Mulino presented the Corporations Amendment (Digital Assets Framework) Bill 2025 to the House on Wednesday. The legislation would require crypto exchanges and custody providers to obtain an Australian Financial Services License, subjecting them to the same laws as traditional financial institutions.
Mulino told the House that digital assets are reshaping finance globally and Australia must keep pace. The government aims to attract investment, create jobs, and position the financial system as a leader in innovation by getting the regulatory framework right.
The Treasury launched a consultation on the draft bill in September, which Mulino described as the cornerstone of the Albanese government's crypto roadmap released in March. The local crypto industry largely backed the draft legislation but requested further clarity and simplification during the consultation process.
Companies can currently hold unlimited amounts of client crypto without financial law safeguards. Mulino stated that the risks of scams or frauds similar to FTX cannot be ignored, prompting this regulatory response to reduce loopholes.
Crypto platforms that only facilitate trading currently need to register with the Australian Transaction Reports and Analysis Centre. The registry includes 400 registered crypto exchanges, though many remain inactive. The new bill focuses on companies holding crypto for customers rather than the underlying technology itself, allowing the framework to evolve as new forms of tokenization and digital services emerge.
The bill creates two new financial products requiring an AFSL. These include a digital asset platform and a tokenized custody platform, both of which must register with the Australian Securities and Investments Commission. Anyone advising on, dealing in, or arranging for others to deal in crypto will be treated as providing a financial service that requires a license.
Crypto and custody platforms must meet ASIC's minimum standards for transactions, settlements, and holding customer assets under the bill. They must also provide clients with a guide explaining their service, fees, and risks.
Small-scale companies with less than 10 million Australian dollars ($6.5 million) in transaction volume over 12 months are exempt from licensing, along with those dealing or advising on platforms incidental to their main activities.
The bill outlines an 18-month grace period on licensing to provide relief for businesses trying to comply. Prime Minister Anthony Albanese's center-left Labor Party holds a 94-seat majority in the House, making quick passage likely before heading to the Senate, where Labor may need crossbench and opposition support.
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