Australia Advances Bill to Bring Crypto Platforms Under Finance Laws

The Australian government is introducing new legislation that would regulate crypto platforms under the country’s existing financial services framework. Introduced by Assistant Treasurer Daniel Mulino, the Corporations Amendment (Digital Assets Framework) Bill 2025 aims to require exchanges and custody providers to obtain an Australian Financial Services License (AFSL) for the first time. 

Mulino told the House that the reforms are essential to ensure Australia keeps the peace with global developments in digital finance. He said, “Across the world, digital assets are reshaping finance. 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.”

The bill follows a Treasury consultation launched in September, after an earlier version of the legislation was presented as the foundation of the Albanese Government’s crypto roadmap released in March. While the industry broadly supported the draft, many participants urged the government to provide clearer definitions and simpler compliance requirements.

The central focus of the bill is on strengthening safeguards for customer assets. Mulino noted that under current rules, companies can hold unlimited amounts of client cryptocurrency, “without any financial law safeguards.” This exposes investors to risks like FTX. The new framework closes these gaps by ensuring that “comparable activities face comparable obligations.”

The legislation creates two new categories of financial products, i.e., digital asset platforms and tokenized custody platforms. Both of these products will fall under the Australian Securities and Investments Commission (ASIC). Providers offering trading, custody, or advisory services involving crypto will be considered financial service providers and must meet minimum standards for transactions, settlements, and asset protection. They will also be required to clearly disclose fees, risks, and service details to clients. 

Important Reads: Australia Moves to Regulate Crypto Under Financial Services Laws 

Small-scale companies processing under AUD 10 million in annual transaction volume will be exempt from licensing, as well as companies whose crypto-related activities are incidental to their main business. The bill also outlines an 18-month grace period on licenses, which Mulino says gives “relief for businesses trying to do the right thing.”

With the Labor Party holding a majority in the House of Representatives, the bill is expected to pass swiftly before heading to the Senate, where crossbench and opposition support may be required.