The government of Australia has taken decisive steps to regulate its evolving cryptocurrency industry. The Treasury of the country revealed a draft bill that will bring digital assets under Australia’s financial services framework. Daniel Mulino, Assistant Treasurer, announced the proposal of this bill this morning. He also confirmed that the government requires all crypto firms to acquire financial services licenses. Having the license will bring them under the oversight of the Australian Securities and Investments Commission (ASIC).
The draft legislation classifies digital asset platforms (DAPs) and tokenized custody platforms (TCPs) as financial intermediaries, subjecting them to the same licensing requirements and consumer protection standards that apply to traditional financial services providers.
“The final legislation will introduce a new framework for digital asset businesses in Australia. It will do so by extending existing financial services laws but in a targeted way,” Mulino said during the announcement.
The move reflects Canberra’s aim to strengthen consumer protections in the crypto market, following years of debate about the risks posed by unregulated exchanges and custody services. Under the newly proposed system, crypto companies will need to comply with the strict rules on governance, safety, and transparency.
Experts believe the new bill can improve the reputation of the crypto sector in Australia. In this way, institutional investors will be encouraged, and public trust will be improved. However, some critics warn that heavy compliance can hinder the innovation of the sector and put off smaller firms in the market.
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The Treasury has opened the draft for public consultation, inviting feedback from industry players, consumer groups, and legal experts. The consultation window will remain open until October 24, 2025, after which the government is expected to refine and finalize the legislation.
If passed, Australia would join a growing list of jurisdictions, including the European Union and the United States, that are moving to regulate digital assets through their financial services frameworks.
