The Australian government has passed a new legislation that is meant to bring digital asset platforms and tokenised custody platforms under the country’s financial services licensing regime. This rule applies to all digital asset service providers operating in Australia, as it will help in bringing more clarity, transparency, and security to investors. The bill is called The Corporations Amendment (Digital Assets Framework) Bill 2025 and has now cleared both houses in the Australian parliament. This also marks a big step for Australia in its effort to bring a regulatory framework for digital assets.
New Rules Aim to Align Crypto Platforms With Financial Regulations
This regulation has a core objective of targeting Australia’s cryptocurrency market, and in doing so, will enforce strict Know Your Customer (KYC) protocols and anti-money laundering practices. The bill now sits waiting for the royal assent, which is the final step before becoming a law. Additionally, it takes another 12 months after the assent, with an additional transition period for businesses to comply.
The bill also requires digital asset service providers, which include exchanges and custody platforms, to obtain an Australian Financial Services Licence (AFLS) from the Australian Securities and Investments Commission (ASIC), the country’s financial regulator.
An industry group called The Digital Economy Council of Australia, which represents Australia’s digital economy, praised this move in a statement on LinkedIn. “For the first time, we have a legislative framework that directly addresses digital asset platforms, and it provides long-awaited clarity for businesses, investors, and regulators, and marks a shift from uncertainty toward implementation,” DECA said. The former assistant director of digital asset policy at the Commonwealth Treasury, Jazz Ozvald, also took to LinkedIn to express delight at the milestone in passing the bill.
The bill has made progress in the past, when Australian lawmakers put forward ideas to regulate crypto platforms under the financial services framework. The earlier proposal spelt out licensing requirements for exchanges and custody providers. Its goal was to bring crypto firms in line with traditional financial rules while also better protecting investors and lowering the risks associated with market volatility.
Australia is now positioning itself as one of the countries that is tightening regulatory scrutiny of digital assets. This new licensing rule is expected to bring greater regulatory certainty and trust to the sector, even though it might increase compliance costs for operators. As the framework develops, it could help shape how cryptocurrency businesses work in Australia’s financial system and help keep the market stable over the long term.
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