Australia Passes Bill to Regulate Crypto Platforms

Australia has taken a significant step towards integrating digital assets into its mainstream financial system with the passage of the Corporations Amendment (Digital Assets Framework) Bill 2025. This landmark legislation, cleared by both houses of federal parliament on April 1, aims to bring crypto exchanges and custody providers under a robust regulatory framework.

The new bill mandates that digital asset platforms obtain an Australian Financial Services Licence (AFSL), aligning them with traditional financial institutions. This move replaces a fragmented system where crypto exchanges primarily registered with anti-money laundering authorities.

Furthermore, the legislation introduces two distinct categories under the Corporations Act: “Digital asset platforms” will encompass entities holding cryptocurrencies on behalf of users, while “Tokenised custody platforms” will cover those holding real-world assets and issuing corresponding digital tokens. Operators in both categories must secure an AFSL from the Australian Securities and Investments Commission (ASIC).

Platforms operating under these new rules must adhere to standards requiring them to act “efficiently, honestly and fairly.” They must also clearly disclose how customer assets are stored and maintain adequate governance and risk management controls.

This regulatory evolution is a key recommendation from a report by Australia’s Digital Finance Co-operative Research Centre (DFCRC), developed in collaboration with the Digital Economy Council of Australia (DECA). The report, titled “Unlocking Australia’s $24 billion Digital Finance Opportunity,” identifies that modernizing financial licensing for digital assets is crucial to realizing a potential AU$24 billion per year economic windfall for the Australian economy.

Currently, Australia is projected to capture only about AU$1 billion per year in digital finance economic gains by 2030 without targeted policy actions. The DFCRC report highlights that updating licensing arrangements alone could unlock as much as AU$1.9 billion in gains for the Australian economy by 2030.

Other priorities outlined in the report include establishing a Digital Financial Market Infrastructure (DFMI) sandbox to facilitate the transition of pilot projects to production. Additionally, deploying foundational infrastructure, such as tokenized government bonds and a wholesale Central Bank Digital Currency (CBDC) within the DFMI sandbox, is also a key focus.

The Corporations Amendment (Digital Assets Framework) Bill 2025 marks a significant pivot for Australia, aiming to provide regulatory clarity and foster innovation within its digital asset sector. While the framework is set to take effect 12 months after Royal Assent, with a transition period for businesses, industry leaders view it as a foundational step toward a more secure and integrated digital finance future.

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