Bill and ASIC Relief Aim to Close Australia Crypto Licensing Gaps
Parliament is debating the Corporations Amendment (Digital Assets Framework) Bill 2025, introduced last November. Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino introduced the bill to tighten platform oversight.
The draft would require crypto exchanges and custody providers to hold an Australian Financial Services Licence (AFS Licence). Breaches could trigger penalties of up to 10% of annual turnover.
The framework would create two licence types for digital asset platforms and tokenized custody platforms. It would target firms that control client funds, rather than regulating the underlying blockchain technology.
Licensed firms would need to meet ASIC standards for transaction handling, settlement, and asset custody.
Meanwhile, the bill would exempt small operators handling less than A$10 million a year. Mulino said the reforms focus on companies controlling customer assets. He warned that current rules can allow firms to hold unlimited client crypto without financial law safeguards.
The government has projected that the framework could unlock A$24 billion in annual productivity gains. Consequently, officials have as both a consumer protection and a competitiveness measure.
ASIC has also moved with interim steps during the transition. In December, it finalised class relief, allowing certain stablecoins and wrapped tokens to be distributed without separate licenses until mid-2028, with recordkeeping and Product Disclosure Statements.
The relief also extends to omnibus custody structures used in traditional markets.
Meanwhile, ASIC adopted a sector-wide no-action position until June 2026, giving firms time to seek licenses or adjust operations.
also said many stablecoins, wrapped tokens, tokenized securities, and some digital asset wallets can already fall under financial product rules. Still, ASIC listed 2026’s other risks, including private credit exposure, superannuation trustee failures, cyberattacks, and CHESS (Clearing House Electronic Subregister System) outages.
As Parliament debates the bill, firms face a near-term compliance window shaped by ASIC guidance, class relief, and the no-action stance. Consequently, the next phase centres on licence applications, custody upgrades, and clearer perimeter lines ahead of 2026.
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