Australia’s Parliament is advancing landmark legislation designed to impose strict regulatory oversight on cryptocurrency exchanges and digital asset custody providers, introducing a comprehensive framework aimed at boosting investor protection and unlocking significant economic gains.
Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino on Wednesday introduced the Corporations Amendment (Digital Assets Framework) Bill 2025, which establishes the nation’s first full regulatory structure for companies that hold crypto on behalf of customers. The bill has already passed its first reading and moved immediately to a second reading for debate.
At the core of the bill is a major licensing overhaul. Crypto exchanges and custody platforms will now be required to obtain an Australian Financial Services License (AFSL), placing them under the direct supervision of the Australian Securities and Investments Commission (ASIC).
Minister Mulino warned that it is “currently possible for a company to hold an unlimited amount of client crypto without any financial law safeguards,” stating the reforms target businesses that control customer assets, rather than the underlying technology.
The framework introduces two new license categories: “digital asset platform” and “tokenized custody platform.”
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Licensed firms must adhere to ASIC standards for asset custody, transactions, and settlement processes.
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Platforms must provide customers with a service guide detailing fees, risks, and asset management protocols.
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Non-compliant companies will face steep penalties for failures in asset protection.
The government projects that the proposed reforms could unlock as much as A$24 billion ($15.6 billion) in annual productivity gains by integrating digital assets more securely into the financial system.
In a joint statement, the ministers asserted, “We take Australia’s crypto industry seriously,” adding that digital assets present “big opportunities for our economy, our financial sector, and our businesses.” The legislation follows extensive consultation with the industry.
To balance regulation with innovation, the bill provides exemptions for small operators, including firms with less than A$10 million ($6.5 million) in annual transaction volume. It also includes an 18-month grace period to ease the transition for compliant businesses.
While the bill is expected to pass the House where the Labor Party holds a majority, its passage in the Senate may face a tougher contest.
