Australia has enacted new legislation mandating that cryptocurrency platforms secure financial services licenses, a significant development in the country’s efforts to regulate its expanding digital asset sector.
The “Corporations Amendment (Digital Assets Framework) Bill 2025” has successfully passed both houses of parliament, following its introduction by the Treasury in November 2025. This new framework integrates crypto service providers into the existing financial services licensing regime.
Under the new law, entities operating as “digital asset platforms” and “tokenized custody platforms” must obtain an Australian Financial Services Licence (AFSL). While the bill does not provide a precise definition for “digital assets,” official documentation clarifies that they are subject to the same overarching legal principles as traditional assets, encompassing property, consumer protection, insolvency, criminal, family, and tax laws.
The legislation stipulates that these crypto platforms must operate with efficiency, honesty, and fairness. They are also required to provide transparent disclosures regarding the safeguarding of customer assets and maintain robust governance and risk management protocols. The regulations are slated to take effect 12 months after receiving Royal Assent, with a subsequent period allocated for businesses to achieve compliance.
Key Takeaways
- Australia has passed the “Corporations Amendment (Digital Assets Framework) Bill 2025,” requiring crypto platforms to obtain financial licenses.
- This legislation brings digital asset platforms and tokenized custody platforms under the Australian Financial Services Licence (AFSL) regime.
- Platforms must operate efficiently, honestly, and fairly, provide clear disclosures on asset custody, and implement strong governance.
- The framework is expected to commence 12 months after Royal Assent, with a transition period for compliance.
- Industry stakeholders view this as a crucial step toward establishing a clear regulatory foundation for digital assets in Australia.
Establishing a Regulatory Precedent
The passage of this bill is being recognized by industry participants as a pivotal moment for crypto regulation in Australia. Kate Cooper, CEO of OKX Australia, commented that the legislation establishes a clear regulatory foundation, acknowledging digital assets as an integral part of future financial market infrastructure rather than merely an emergent innovation.
The focus for the industry now shifts to the practical implementation of these rules. Cooper emphasized that clearer standards, enhanced consumer protections, and continuous engagement between the industry and regulatory bodies will be vital for Australia to cultivate a trusted and globally competitive system.
John O’Loghlen, APAC managing director at Coinbase, described the bill’s enactment as a “defining moment” for Australia’s cryptocurrency sector. He noted that while it enhances Australia’s position in the global digital economy, there is an urgent need for the government to advance broader reforms concerning digital assets and tokenization, particularly the development of a stablecoin framework.
Advocacy group Stand with Crypto Australia stated that the bill provides Australian crypto users with the certainty and protections they have long sought. However, the group indicated that their advocacy efforts will continue, specifically addressing the persistent issue of “debanking” faced by crypto users across Australia, and urging government action on this matter.
Source: : www.theblock.co