Establishing global crypto regulatory framework
Aussie Land has introduced landmark legislation that subjects cryptocurrency exchanges and custody providers to financial services laws. It means that the Corporations Amendment (Digital Assets Framework) Bill 2025 requires these platforms to obtain an Australian Financial Services Licence. The Australian Securities and Investments Commission (ASIC) will serve as the primary regulator. The new legislation defines core concepts including “digital tokens”, “digital asset platforms”, and “tokenised custody platforms”. To respect the regulation, licensed platforms must provide clear disclosures on how customer assets are stored with robust governance and risk controls. What is more, platforms must avoid misleading conduct and offer dispute-resolution mechanisms.
The government estimates these reforms could generate productivity gains of up to $24 billion annually. Currently, businesses can hold unlimited amounts of client cryptocurrency without any financial law protections. This creates significant risks for consumers. Recent overseas collapses have demonstrated the consequences of inadequate oversight. The new framework applies to both cryptocurrencies like Bitcoin and stablecoins, as well as tokenised representations of real-world assets. Importantly, smaller operators are exempt from full licensing requirements. Platforms holding less than $5,000 per customer and facilitating under $10 million annually qualify for this exemption.
ASIC gains enforcement powers
The legislation builds on earlier guidance issued by ASIC in October 2025. ASIC Chair Joe Longo stated that Australia must “seize the opportunity or be left behind” as tokenisation transforms capital markets worldwide. The regulatory body has granted a sector-wide no-action position until 30 June 2026. This gives firms time to consider the updated guidance and apply for licences. Under the new framework, licensed entities must adhere to ASIC standards regarding transactions, settlement processes, and custody of assets. Platforms must provide customers with a service guide detailing fees, risks, and asset-management practices. The bill grants ASIC and the Minister broad powers to intervene in the market. They can declare certain platforms as financial markets or exempt them where appropriate. Mulino emphasised that the reforms target businesses managing customer assets “instead of focusing on the underlying technology”. He noted that “millions of Australians are using or investing in digital assets every year”.
The legislation aims to make this “as safe and secure as possible, whilst also encouraging innovation”. The framework seeks to balance consumer protection with industry growth. It aligns crypto service operators with the same conduct regime governing traditional financial services. However, the design accommodates the specific technical and business models used by crypto platforms. The crypto industry generally welcomed the proposal during September consultations. Several stakeholders requested more straightforward regulations and clearer definitions. The government insists that stronger rules should not stifle industry growth.
