Australia's government has introduced a new bill that will regulate crypto platforms under existing financial services laws, following an industry consultation that indicated cautious support for the legislation.
Assistant Treasurer Daniel Mulino introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 on Wednesday. This bill mandates that crypto companies, including exchanges and custody providers, must obtain an Australian Financial Services License (AFSL).
“Across the world, digital assets are reshaping finance,” Mulino stated in the House on Wednesday. “Australia must keep pace. If we get this right, we can attract investment, create jobs and position our financial system as a leader in innovation.”
The Treasury had launched a consultation over a draft of the bill in September. Mulino described this consultation as the cornerstone of the Albanese Government’s crypto roadmap, which was released in March.
The local crypto industry expressed general support for the draft legislation. However, many participants in the consultation indicated that the bill required further clarity and simplification.
Safeguards for Crypto Held for Clients
Mulino informed the House that currently, companies can hold an unlimited amount of client crypto without any financial law safeguards. He emphasized that the risks of scams or frauds, such as the FTX incident, cannot be overlooked.
“This bill responds to those challenges by reducing loopholes and ensuring comparable activities face comparable obligations, tailored to the digital asset ecosystem,” he explained.
At present, crypto platforms that solely facilitate trading are only required to register with the Australian Transaction Reports and Analysis Centre. This agency has registered 400 crypto exchanges, many of which are inactive.
Mulino clarified that the legislation will concentrate on companies that hold crypto for customers, rather than the underlying technology itself. This approach allows the framework to evolve as new forms of tokenization and digital services emerge.
New License Types and Exemptions for Small Players
The bill amends the Corporations Act to introduce two new financial product categories: a “digital asset platform” and a “tokenized custody platform.” Both of these will necessitate an AFSL.
This license will serve to register the platforms with the Australian Securities and Investments Commission (ASIC). Currently, only exchanges that sell “financial products,” such as derivatives, are mandated to register.
Mulino stated that any entity “advising on, dealing in, or arranging for others to deal in” crypto will be considered to be providing a financial service, which will require a license.
Under the bill, crypto and custody platforms must adhere to ASIC’s minimum standards for transactions, settlements, and the holding of customer assets. They are also required to provide clients with a guide detailing their services, fees, and associated risks.
Mulino announced that the bill includes exemptions for “small-scale” companies. These exemptions apply to entities with less than 10 million Australian dollars ($6.5 million) in transaction volume over a 12-month period, as well as those dealing or advising on platforms that are incidental to their main, non-financial activities.
The bill provides an 18-month grace period for licensing. Mulino stated that this period offers relief for businesses that are committed to complying with the new regulations.
The bill is anticipated to pass the House swiftly, given that Prime Minister Anthony Albanese’s center-left Labor Party holds a significant 94-seat majority. Following its passage through the House, it will proceed to the Senate, where Labor might require the support of the crossbench and opposition parties to secure its approval.