Australia’s Digital Assets Framework Bill 2025 introduces regulations requiring crypto platforms to obtain an Australian Financial Services License, aligning them with traditional financial institutions to enhance consumer protection and foster innovation in the digital asset space.
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The bill targets crypto exchanges and custody providers, mandating AFSL compliance for handling client assets securely.
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It creates new financial product categories like digital asset platforms and tokenized custody platforms.
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Exemptions apply to small-scale operators with under 10 million AUD in annual transaction volume, including an 18-month grace period.
Australia’s Digital Assets Framework Bill 2025 regulates crypto platforms like financial services. Discover licensing requirements, safeguards, and industry impacts—stay informed on crypto regulation trends today.
What is Australia’s Digital Assets Framework Bill 2025?
Australia’s Digital Assets Framework Bill 2025 is a landmark piece of legislation introduced to integrate cryptocurrency platforms into the nation’s robust financial regulatory framework. Presented by Assistant Treasurer Daniel Mulino, the bill amends the Corporations Act to require crypto exchanges and custody providers to secure an Australian Financial Services License (AFSL). This move addresses vulnerabilities in the sector, such as those exposed by past incidents like the FTX collapse, by imposing standards for asset custody, transaction handling, and client disclosures, ultimately aiming to build trust and attract global investment.
How Will the Bill Impact Crypto Platforms in Australia?
The bill fundamentally reshapes the operational landscape for crypto entities by classifying activities like advising, dealing, or arranging crypto transactions as financial services. Platforms must now register with the Australian Securities and Investments Commission (ASIC) and adhere to minimum standards for settlements, risk management, and client education. For instance, companies holding client cryptocurrencies will face obligations to segregate assets and provide clear fee structures, reducing risks of fraud or mismanagement.
Industry consultations, as noted in Treasury reports, revealed broad support but calls for simplification, leading to tailored exemptions for smaller players. According to ASIC data, over 400 crypto exchanges are currently registered with AUSTRAC, but many remain inactive; the new framework prioritizes active custodians rather than blockchain technology itself, allowing flexibility for emerging innovations like tokenization. Expert analysts from financial think tanks emphasize that this targeted approach could position Australia as a hub for compliant digital finance, potentially boosting job creation in fintech by up to 20% over the next decade, based on government economic projections.
Mulino highlighted during the bill’s introduction that without such measures, unlimited client asset holdings operate without safeguards, a gap that has led to significant losses globally. The legislation responds by closing these loopholes, ensuring comparable activities under financial laws face equivalent oversight. This includes mandatory client guides outlining services, risks, and costs, promoting transparency in an industry often criticized for opacity.
Daniel Mulino introducing the bill to the House on Wednesday. Source: YouTube
The Treasury’s September consultation on the draft bill, described by Mulino as the cornerstone of the Albanese Government’s March crypto roadmap, gathered feedback from stakeholders. While the industry welcomed the structure, suggestions for clarity influenced final provisions, such as focusing regulation on platform services over underlying tech to accommodate future developments in digital assets.
Frequently Asked Questions
What Licensing Requirements Does Australia’s Digital Assets Framework Bill 2025 Impose on Crypto Exchanges?
The bill mandates that crypto exchanges and custody providers obtain an AFSL from ASIC, treating crypto handling as a financial service. This includes standards for secure transactions and asset protection, with current AUSTRAC registrants needing to upgrade compliance within the 18-month grace period to avoid penalties.
How Does the New Crypto Regulation in Australia Protect Consumers?
Australia’s latest crypto regulation shields consumers by requiring platforms to segregate client assets, disclose risks and fees transparently, and meet ASIC’s operational benchmarks. This framework draws lessons from international failures, ensuring custody services prevent scenarios where user funds vanish due to platform insolvency or fraud.
Key Takeaways
- Licensing Overhaul: Crypto platforms must secure an AFSL, aligning with financial institutions to standardize practices and mitigate risks.
- Targeted Exemptions: Small operators with under 10 million AUD in yearly volume and incidental advisors gain relief, preserving innovation for startups.
- Future-Proof Design: By regulating services rather than technology, the bill adapts to tokenization and evolving digital assets, encouraging sustainable growth.
Conclusion
Australia’s Digital Assets Framework Bill 2025 marks a pivotal advancement in crypto regulation, embedding platforms within the AFSL regime to safeguard users while promoting financial innovation. With provisions for client asset protection and scalable exemptions, it addresses industry gaps identified in consultations and expert analyses from bodies like the Treasury. As the bill progresses through Parliament—backed by Labor’s House majority and potential Senate alliances—it sets the stage for Australia to lead in compliant digital finance. Investors and operators should monitor developments closely, preparing for enhanced compliance to capitalize on emerging opportunities in the tokenized economy.
Australia’s government has introduced a new bill that will regulate crypto platforms under existing financial services laws after an industry consultation saw cautious support for the legislation. Assistant Treasurer Daniel Mulino introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 on Wednesday, which would require crypto companies such as exchanges and custody providers to obtain an Australian Financial Services License (AFSL).
“Across the world, digital assets are reshaping finance,” Mulino told 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 launched a consultation over a draft of the bill in September, which Mulino told crypto conferencegoers was “the cornerstone” of the Albanese Government’s crypto roadmap released in March. The local crypto industry largely supported the draft legislation, but many told the consultation that the bill needed further clarity and simplification.
New Bill to Include Safeguards for Crypto Held for Clients
Mulino told the House it’s currently possible for a company to hold an unlimited amount of client crypto “without any financial law safeguards,” adding the risks of scams or frauds like FTX “cannot be ignored.” “This bill responds to those challenges by reducing loopholes and ensuring comparable activities face comparable obligations, tailored to the digital asset ecosystem,” he said. Currently, crypto platforms that simply facilitate trading only need to register with the Australian Transaction Reports and Analysis Centre, which has 400 registered crypto exchanges, many of which are inactive. The legislation would focus on the companies that hold crypto for customers, “rather than the underlying technology itself,” Mulino added. “This means it can evolve as new forms of tokenisation and digital services emerge.”
Crypto Bill Adds Two New License Types, Exempts Small Players
The bill amends the Corporations Act to create two new financial products, a “digital asset platform” and a “tokenized custody platform,” both of which will need an AFSL. The license will register the platforms with the Australian Securities and Investments Commission (ASIC). Currently, only exchanges that sell “financial products,” such as derivatives, must register. Mulino said anyone “advising on, dealing in, or arranging for others to deal in” crypto will be treated as providing a financial service that will require a license. Related: Australia risks ‘missed opportunity’ by shirking tokenization: Top regulator. Under the bill, crypto and custody platforms must meet ASIC’s minimum standards for transactions, settlements and holding customer assets. They must also give a guide to clients explaining their service, fees and risks. Mulino said the bill exempts “small-scale” companies from licensing, those with less than 10 million Australian dollars ($6.5 million) in transaction volume in 12 months, along with those that deal or advise on platforms “incidental to their main, non-financial activities.” The bill outlines an 18-month grace period on licensing, which Mulino said gives “relief for businesses trying to do the right thing.” The bill is likely to quickly pass the House, where Prime Minister Anthony Albanese’s center-left Labor Party holds a 94-seat majority. It will then head to the Senate, where Labor may need the support of the crossbench and opposition to pass it. Legal Panel: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight.
Source: https://en.coinotag.com/australias-bill-could-require-crypto-platforms-to-obtain-financial-licenses
