Australia has approved its first comprehensive legislation for the digital asset market. Cryptocurrency exchanges and custodial services are now required to obtain financial service licenses.
On April 1, the Corporations Amendment (Digital Assets Framework) Bill 2025 passed both houses of Parliament. Cryptocurrency-focused platforms will be subject to the same standards as brokers and fund managers.
The legislation introduces two new regulated classes under the Corporations Act:
- Digital Asset Platforms — exchanges and similar services that hold digital assets on behalf of users.
- Tokenized Storage Platforms — firms that issue and hold virtual tokens backed by real assets.
Operators in both categories must obtain an AFSL license from the Australian Securities and Investments Commission (ASIC). This license imposes requirements for client fund protection, capital adequacy, transparency in disclosures, and participation in dispute resolution mechanisms.
Previously, Australian crypto exchanges only needed to register with anti-money laundering authorities if their products were not classified as financial instruments. Under the new regulations, trading platforms will face stricter standards.
ASIC will gain expanded powers to establish rules for asset custody, management, and risk management, with civil penalties for violations. Smaller platforms will be exempt from some requirements.
Firms with less than 5,000 AUD per client and an annual turnover below 10 million AUD will be exempt from full licensing.
The bill is currently awaiting royal assent — the final step before it becomes law. It will take effect 12 months after approval, with an additional transition period for businesses.
Jazz Oswald, former Deputy Director of Digital Asset Policy at the Commonwealth Treasury, welcomed the passage of the legislation.
He noted that the government also added clarifications in the explanatory memorandum regarding how the law should apply in cases where control over digital tokens is exercised through multilateral computations.
It is worth noting that the plan for developing cryptocurrency legislation in Australia emerged in early 2025. It aims to create a regulated ecosystem that balances innovation with consumer protection.