Australia passed legislation on Wednesday, creating its first comprehensive regulatory framework for digital assets. The Corporations Amendment (Digital Assets Framework) Bill 2025 cleared both houses on April 1. This move requires crypto exchanges and custody providers to obtain financial services licenses.
The new law brings firms that hold digital assets on behalf of customers into the existing Australian Financial Services Licence regime. Operators must secure an Australian Financial Services License from ASIC to operate legally. This places them under the same core rules as brokers or fund managers.
Key Details
Australia's bill creates two new regulated categories under the Corporations Act. The first category covers digital asset platforms, which hold crypto on behalf of users. The second category includes tokenized custody platforms, which hold real-world assets and issue a corresponding digital token.
These operators must safeguard client assets and provide standardized disclosures to the public. They also need to avoid misleading conduct and maintain dispute resolution systems. Compensation systems are mandatory for all licensed entities under the new framework.
Instead of regulating crypto itself, the law targets the companies in the middle that control customer funds. This approach aims to reduce risks like commingling, insolvency, and misuse of assets. Past crypto failures have caused significant losses due to these specific vulnerabilities.
What This Means
Research from the Digital Finance Cooperative Research Center estimates Australia could generate as much as A$24 billion annually. This figure represents roughly 1% of GDP from tokenized markets and digital assets. Under the previous regulatory path, the country was on track to capture just A$1 billion of that by 2030.
"The law provides a top-down signal that Australia is serious about digital assets," said a Kraken spokesperson. They added that clearer rules would give firms confidence to invest and expand locally. This sentiment reflects a broader industry desire for regulatory certainty.
"The bill establishes a foundation for institutional participation and long-term capital allocation," said Kate Cooper, CEO of OKX Australia. She called the legislation a pivotal moment during her remarks to the Digital Economy Council of Australia. Her comments highlight the shift toward mainstream financial integration.
Officials flagged March for initial approvals, but licensing has yet to begin with no updated timeline. ASIC has not released specific dates for when the first applications will be processed. Firms must prepare their compliance frameworks while waiting for further guidance.
This regulatory shift signals a maturation of the digital asset sector in the Asia-Pacific region. Investors will watch how ASIC enforces these rules over the coming quarters. The outcome could influence similar frameworks in other jurisdictions globally.
