Australia Advances Legislation for Crypto Regulation
The Australian government moves to regulate crypto platforms under financial laws, requiring licenses for crypto firms.
Australia Advances Legislation for Crypto Regulation
Australia’s government has recently taken steps to implement a new law that enforces the same regulatory framework on cryptocurrency platforms as it does for traditional financial institutions. This initiative follows a consultative process within the industry that revealed cautious support for such legislation.
On Wednesday, Assistant Treasurer Daniel Mulino presented the Corporations Amendment (Digital Assets Framework) Bill 2025. This bill mandates that cryptocurrency companies, including exchanges and custodial services, must secure an Australian Financial Services License (AFSL).
“Across the world, digital assets are reshaping finance,” Mulino remarked in 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.”
Mulino’s statement reflected the global shift toward digital assets and the need for Australia to adapt accordingly.
The Treasury recently initiated a consultation process regarding a draft version of this bill, marking a critical element of the Albanese Government’s roadmap for crypto regulation, announced back in March. While the local cryptocurrency sector showed general favor towards the draft, many stakeholders voiced that further clarification and simplification were essential.
New Bill to Include Safeguards for Crypto Holdings
Mulino emphasized the current lack of financial law protections allowing companies to hold unlimited cryptocurrency for their clients, flagging potential risks of scams or fraud similar to the infamous FTX collapse.
“This bill responds to those challenges by reducing loopholes and ensuring comparable activities face comparable obligations, tailored to the digital asset ecosystem,” he explained.
As it stands, entities that facilitate trading must register with the Australian Transaction Reports and Analysis Centre—currently, there are around 400 registered exchanges, many of which are inactive.
The new legislation will target firms that manage customer assets rather than the underlying technologies.
Crypto Bill Introduces New License Types and Exemptions for Smaller Companies
The legislation seeks to amend the Corporations Act, introducing two new categories of financial products: a “digital asset platform” and a “tokenized custody platform,” both requiring an AFSL.
It also classifies anyone providing advice or facilitating transactions in crypto as offering a financial service, thus necessitating a license. As a result, upcoming regulations will enforce minimum standards on transactions, settlements, and the management of customer assets.
Mulino noted that smaller companies with under 10 million AUD in transaction volumes within a year will be exempt from these licensing requirements. There is also an 18-month grace period envisaged for licensure as Mulino articulated a commitment to support businesses striving for compliance.
Given the significant majority held by Prime Minister Anthony Albanese’s Labor Party in the House, the bill is expected to pass quickly, subsequently heading to the Senate for further deliberation.
