Australia has enacted its first comprehensive digital-asset law, forcing crypto exchanges and custody providers to obtain formal financial services licenses and bringing them under long-established investor-protection rules.
What passed
On April 1 the Corporations Amendment (Digital Assets Framework) Bill 2025 cleared both houses of parliament. The measure folds firms that hold digital assets on behalf of customers into Australia’s existing Australian Financial Services Licence (AFSL) regime, overseen by ASIC (the Australian Securities and Investments Commission).
Two new regulated categories
The bill creates two distinct categories under the Corporations Act:
- Digital asset platforms: operators that custody crypto on behalf of users.
- Tokenized custody platforms: services that hold real‑world assets and issue corresponding digital tokens.
Operators in both categories must obtain an AFSL and will be subject to the same baseline obligations that apply to brokers and fund managers — including safeguarding client assets, providing standardized disclosures, avoiding misleading conduct, and maintaining dispute resolution and compensation arrangements.
Why it matters
Rather than regulating tokens themselves, the law zeroes in on the intermediaries that control customer funds. Regulators say this targets practical failure modes — such as commingling, insolvency and misuse of assets — that have driven losses in past crypto collapses.
Economic upside
Research from the Digital Finance Cooperative Research Center and industry groups projects Australia could capture up to A$24 billion a year from tokenized markets, payments and other digital-asset activity — roughly 1% of GDP. Under the previous regulatory trajectory, Australia was on track to secure only about A$1 billion by 2030.
Industry reaction
Kraken described the bill as a “top-down signal” that Australia is serious about digital assets, saying clearer rules will give firms confidence to invest and expand locally. Kate Cooper, CEO of OKX Australia and co‑chair of the Digital Economy Council of Australia, called the legislation a “pivotal moment,” arguing it lays the groundwork for institutional participation and long‑term capital allocation.
Bottom line
The new framework marks a major step in Australia’s effort to bring crypto into mainstream financial regulation: exchanges and custody providers will now face licensing and conduct standards designed to protect customers and encourage institutional activity, while unlocking the potential economic benefits of tokenization.
Read more AI-generated news on: undefined/news
