New Legislation Brings Exchanges and Custodians Under AFSL Licensing Framework
Australia is moving closer to establishing a clear regulatory structure for digital asset businesses after the government introduced a bill that places crypto platforms under the country’s long-standing financial services regime. The proposed Corporations Amendment (Digital Assets Framework) Bill 2025 would require exchanges, custodians and other crypto service providers to obtain an Australian Financial Services License (AFSL) for the first time.
Presenting the bill to parliament, Assistant Treasurer Daniel Mulino said the reforms are essential for safeguarding consumers and supporting innovation.
“Across the world, digital assets are reshaping finance. Australia must keep pace if we want to attract investment and build a competitive financial system,” he told lawmakers.
The bill follows a Treasury consultation that drew cautious approval from the local crypto industry, though many participants called for clearer definitions and simpler requirements. Mulino argued that the reforms directly address long-standing vulnerabilities.
“Right now, a company can hold unlimited customer crypto without financial safeguards. The risks of another major collapse cannot be ignored,” he said.
New Licenses Target Platforms Holding Customer Assets
The legislation introduces two new regulated categories — digital asset platforms and tokenized custody platforms — both requiring AFSL oversight. The rules focus on companies that store or manage crypto on behalf of users, rather than on blockchain technology itself, allowing the framework to adapt as tokenization evolves.
Platforms will need to meet standards for transactions, settlement processes and the handling of customer assets, and must provide clear disclosures on services, fees and risks.
Mulino said smaller operators with less than 10 million AUD in annual volume will be exempt, and all businesses will receive an 18-month transition period before full enforcement.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.