Australia has finally put hard edges around its long-discussed crypto overhaul. On Nov. 27 (local time), the government confirmed it has introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 to Parliament, framing it as a way to unlock innovation while preventing a repeat of high-profile crypto blowups. The move follows months of work by regulators to clarify how existing financial laws already bite in crypto—and to pave the road for a formal licensing regime.
Crypto platforms will need a license
The bill would pull digital-asset platforms squarely into Australia’s financial-services perimeter. Two new product types would be created under the Corporations Act—Digital Asset Platforms (DAPs) and Tokenised Custody Platforms (TCPs)—and operators would need an Australian Financial Services Licence (AFSL). In short: if you hold client crypto or tokenised assets, you’d be regulated like a financial-services business and face core obligations around conduct, disclosure, governance and dispute resolution.
Crucially, the bill targets the platforms (the facilities and their operators), not necessarily redefining every underlying token as a financial product. That approach mirrors draft materials released in September and gives ASIC room to write platform standards—especially on custody and safeguarding client assets.
What changes for exchanges and custodians
1) AFSL licensing and “same rules” treatment.
DAP/TCP operators would be brought under the AFSL framework—facing obligations to act “efficiently, honestly and fairly,” avoid misleading conduct, explain how assets are held and what rights clients have, and maintain robust governance and risk controls.
2) ASIC standards and custody expectations.
In the run-up to the bill, ASIC updated guidance to stress that many digital assets are already financial products today and foreshadowed tougher custody requirements (including net tangible asset thresholds for firms that hold client property). The regulator also offered a sector-wide no-action period until June 30, 2026 to help companies transition into licensing once the rules are finalized.
3) Small, low-risk platforms can be exempt.
Operators holding less than A$5,000 per customer and facilitating under A$10 million in transactions per year could qualify for an exemption—mirroring relief available to other low-risk financial facilities. That tries to right-size compliance for startups that do not pose system-level risks.
Why now?
The government’s message is blunt: unregulated platforms holding unlimited client crypto is a recipe for harm. The bill explicitly aims to close gaps exposed by offshore collapses in the last cycle (think: custody shortfalls, rehypothecation, poor disclosure), while still preserving room for legitimate builders. Treasury’s release even quantifies the upside, citing research that digital finance could deliver up to A$24 billion a year in productivity and cost savings if supported by trusted rules.
CoinDesk’s summary puts the policy goal in everyday terms: move crypto platforms into the mainstream financial system so they meet the same standards of transparency and consumer protection as other intermediaries—AFSL and all.
How this fits with ASIC’s recent moves
The legislation doesn’t arrive in a vacuum. In late October, ASIC said out loud what many lawyers had long argued: a wide range of digital assets and services already fall under existing financial laws, meaning many firms should be licensed today. The commission broadened its interpretations in an updated INFO 225 package and warned offshore and “decentralized” structures that Australian law applies if they target local users. ASIC also flagged custody capital expectations (net tangible assets up to A$10 million in some cases), signaling a higher bar for anyone that takes possession of client property.
If you zoom out, the sequencing makes sense: clarify the perimeter now, then layer in a bespoke digital-asset platform regime. That is exactly what the new bill does.
What it means for users and the industry
For Australian consumers:
If passed, the rules should make it clearer who is responsible for safeguarding your coins and what your rights are if something breaks. AFSL obligations (and ASIC oversight) raise the floor on conduct, disclosure and dispute resolution—longstanding pain points after the last cycle’s failures.
For exchanges and custodians:
Most will need to get licensed, meet custody and capital standards, and harden governance. Some smaller projects may fall into the exemption bucket, but larger venues will be treated like financial services firms—with all the operational discipline that implies. Transitional “no-action” relief gives credible players time to adjust.
For institutional allocators:
A consistent licensing regime plus ASIC-set standards should lower due-diligence friction and make it easier for funds to engage with onshore service providers rather than routing activity abroad or via synthetic exposures. Industry groups are already flagging the bill as a potential unlock for direct participation in tokenized markets.
The open questions to watch
- Scope and timing. Parliament still has to pass the bill; watch the committee process and any amendments that tweak definitions or thresholds (e.g., what exactly counts as a DAP/TCP).
- ASIC rulemaking. The real teeth will arrive when ASIC finalizes platform standards (custody controls, segregation, attestations, and net tangible assets). Expect more detail through 2026 as the no-action period expires.
- Perimeter frictions. The model regulates platforms even when underlying tokens aren’t financial products. That’s pragmatic, but gray zones will persist around staking programs, wrapped assets, and stablecoins—all flagged in ASIC’s guidance.
Conclusion
Australia is moving from concept papers to concrete law. The Digital Assets Framework bill would require licensing for exchanges and tokenised-asset platforms, set clear custody expectations, and right-size compliance for small, low-risk operators. In spirit, it closes the loopholes that enabled “past crypto failures” while acknowledging that digital assets can create real economic value—provided the rails are transparent, supervised, and capitalized.
If you’re tracking crypto regulation in Australia, keep your eye on the bill’s progress, ASIC’s final standards, and how fast major platforms line up for AFSL. The shape of the next cycle—onshore or offshore, trusted or speculative—will flow from those decisions.