Australia Introduces Comprehensive Crypto Regulation Requiring Financial Licenses

Australia has enacted its first comprehensive digital-asset law, mandating crypto exchanges and custody providers to obtain Australian Financial Services Licenses (AFSL). The Corporations Amendment (Digital Assets Framework) Bill 2025 passed both houses on April 1, 2026, bringing digital asset operators under the same core rules as brokers and fund managers.

New Regulated Categories for Digital Assets

The legislation introduces two regulated categories: digital asset platforms, which hold crypto for users, and tokenized custody platforms, which manage real-world assets and issue corresponding digital tokens. Operators of both categories must comply with AFSL requirements, including safeguarding client assets, standardized disclosures, dispute resolution, and avoiding misleading conduct.

Focus on Risk Reduction and Market Growth

The law targets intermediaries controlling customer funds to mitigate risks such as asset commingling, insolvency, and misuse, which have caused losses in previous crypto failures. According to research from the Digital Finance Cooperative Research Center, Australia could generate up to A$24 billion annually from tokenized markets, payments, and digital assets, roughly 1% of GDP, compared to the previous projection of A$1 billion by 2030.

Kraken described the law as a “top-down signal” of Australia’s commitment to digital assets, while Kate Cooper, CEO of OKX Australia, called it a pivotal moment for institutional participation and long-term capital allocation.

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.