Australia’s government has unveiled a new bill aimed at bringing cryptocurrency platforms under existing financial services regulations, following an industry consultation that showed measured support for the move.
Assistant Treasurer Daniel Mulino introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 on Wednesday. The legislation would require crypto companies, including exchanges and custodial services, to hold an Australian Financial Services License (AFSL).
“Digital assets are transforming finance worldwide,” Mulino told the House. “Australia must keep up. Done correctly, this can attract investment, create jobs, and position our financial system as a leader in innovation.”
The Treasury launched a consultation on a draft version of the bill in September. Assistant Treasurer Daniel Mulino described it to attendees at a crypto conference as “the cornerstone” of the Albanese Government’s crypto roadmap released in March.
The draft legislation received broad support from Australia’s crypto industry, though many participants called for greater clarity and simplification.
Bill introduces safeguards for client-held crypto
Mulino told the House that, under current rules, companies can hold unlimited amounts of client crypto “without any financial law safeguards,” highlighting the risks of scams and frauds like FTX.
“This bill addresses those risks by closing loopholes and ensuring comparable activities face comparable obligations, tailored to the digital asset ecosystem,” he said.
At present, crypto platforms that only facilitate trading are required to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC). There are currently 400 registered exchanges, many of which are inactive.
The proposed legislation focuses on companies that hold crypto on behalf of customers, rather than regulating the underlying technology itself. “This approach allows regulation to evolve as new forms of tokenization and digital services emerge,” Mulino added.
Two new license types, exemptions for smaller players
The bill would amend the Corporations Act to create two new financial products: a digital asset platform and a tokenized custody platform, both of which would require an Australian Financial Services License (AFSL).
Licensing would register platforms with the Australian Securities and Investments Commission (ASIC). Currently, only exchanges that sell “financial products,” such as derivatives, are required to register.
Mulino said anyone “advising on, dealing in, or arranging for others to deal in” crypto would be treated as providing a financial service and would need a license. Platforms would also need to meet ASIC’s minimum standards for transactions, settlements, and holding client assets, and provide a guide explaining their services, fees, and risks.
The bill exempts “small-scale” operators from licensing requirements. This includes businesses with less than AUD 10 million ($6.5 million) in transaction volume over 12 months, or those whose crypto dealings are incidental to their primary non-financial activities.
An 18-month grace period for licensing is included, which Mulino said offers “relief for businesses trying to do the right thing.”
The bill is expected to pass the House swiftly, where Prime Minister Anthony Albanese’s center-left Labor Party holds a 94-seat majority. It will then move to the Senate, where Labor may need support from the crossbench or opposition to secure passage.
