TLDR
- The Australian government has introduced a bill to regulate crypto platforms under financial services laws.
- The Corporations Amendment Bill 2025 was submitted to Parliament and has moved to the second reading stage.
- The bill requires digital asset and tokenized custody platforms to obtain an Australian Financial Services Licence.
- Licensed crypto platforms must follow rules on fairness, transparency, risk controls, and customer protection.
- Smaller crypto operators with limited holdings and low transaction volumes will be exempt from licensing.
The Australian government introduced new legislation to regulate digital asset platforms under financial services laws. The Corporations Amendment (Digital Assets Framework) Bill 2025 entered Parliament for debate this week. It proposes mandatory licensing for crypto platforms operating within Australia’s jurisdiction.
New Rules to Enforce Financial Licenses for Crypto Platforms
The Treasury submitted the bill after circulating a draft version in September for public consultation. On Wednesday, the bill was formally introduced and read for the first time in Parliament. Lawmakers moved it immediately for a second reading.
This bill requires digital asset platforms and tokenized custody providers to obtain an Australian Financial Services Licence (AFSL). By doing so, Australia will bring crypto service providers under the same regulatory framework as other financial services.
The explanatory memo stated digital assets must follow current laws related to property, tax, insolvency, consumer rights, and criminal matters. According to the Treasury, this creates consistency and helps protect users. The regulation will apply to both traditional crypto assets and tokenized real-world assets.
AFSL Obligations Will Apply to Crypto Service Providers
Licensed platforms must act efficiently, honestly, and fairly, as outlined in the bill. They must also offer transparent disclosure about customer asset storage. In addition, they must set up strong governance, risk controls, and complaint mechanisms.
Crypto operators will be required to avoid deceptive behavior and maintain compensation systems for customer protection. However, the bill tailors licensing obligations to suit crypto business models. It also considers size and operational risk levels.
Smaller operators will receive an exemption from licensing under certain conditions. They must hold less than A$5,000 per customer and facilitate under A$10 million in yearly transactions. This exemption mirrors existing carve-outs for low-risk financial products.
Australia Aligns Crypto Regulation With Financial Services
Treasury said crypto regulation will now follow the same consumer protection rules that govern traditional financial services. Assistant Treasurer Daniel Mulino said the law supports both innovation and safety. “This is about making that as safe and secure as possible,” he stated.
The law covers crypto assets like bitcoin and stablecoins. It also applies to tokenized forms of bonds, commodities, and real estate. This expansion aims to unlock A$24 billion in productivity and cost savings yearly.
The Treasury cited research from the Digital Finance Cooperative Research Centre to support the legislation’s goals. These findings outline how digital finance could improve market efficiency. Lawmakers seek to regulate a sector used by millions of Australians.
ASIC and Treasury Push for Enforcement and Clarity
The Australian Securities and Investments Commission (ASIC) recently clarified how tokenized products fit existing laws. It also warned unlicensed crypto businesses of possible enforcement actions. These statements align with the new crypto regulation efforts.
Earlier this month, ASIC Chair Joe Longo urged the country to act quickly on tokenization. “Seize the opportunity or be left behind,” Longo said. The regulator continues monitoring unlicensed activity and enforcement actions are ongoing.
Australia’s crypto regulation now advances with formal legislative steps. The bill’s introduction follows previous regulatory efforts in financial services. Parliament will continue debating the legislation before it becomes law.
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