CMC News

#Australia Proposes Licensing Framework for #Crypto Platforms

#Treasury officials have unveiled draft legislation requiring digital asset platforms and tokenized custody providers to obtain Australian financial services licenses. The proposed framework would subject crypto businesses to comprehensive regulatory oversight similar to traditional financial intermediaries.

Consultation on the draft legislation runs until Oct. 24, 2025, giving industry participants an opportunity to provide feedback. The Treasury emphasized focus on businesses holding client assets rather than regulating digital assets themselves.

Assistant Treasurer Daniel Mulino described the legislation as "the cornerstone of our digital asset roadmap" during remarks at a regulatory summit. The framework extends existing financial services laws while maintaining targeted approaches to unique crypto characteristics.

Under current regulations, crypto exchanges only need to comply with Anti-Money Laundering and Know Your Customer requirements. The proposed changes would bring platforms under Australian Securities and Investments Commission oversight with full licensing obligations.

Two new financial products would be created under the Corporations Act amendments. #Digital asset platforms encompass trading venues and brokerages, while tokenized custody platforms include services for tokenized physical assets.