Lawmakers in Australia are pushing a bill that would require licenses for crypto platforms and custody providers.
Australia is moving closer to formal oversight of its growing digital-asset industry. Lawmakers are pushing a bill that would bring crypto platforms and custody services under the country’s financial services rules. The proposal seeks to address gaps that allow firms to hold customer digital assets with limited supervision.
Lawmakers Back Plan to Regulate Digital Asset Platforms in Australia
Australia’s Senate Economics Legislation Committee has supported the government’s plan to regulate the crypto industry. Members of the committee recommended moving forward with the proposed law, saying clearer rules are needed for a fast-growing sector that still lacks consistent oversight.
Proposed as the Corporations Amendment (Digital Assets Framework) Bill 2025, the measure would change the Corporations Act and the ASIC Act. These changes would introduce a system requiring crypto companies to comply with licensing and compliance rules when holding or managing customers’ digital assets.
Under the proposal, crypto exchanges and token custody services that store customer assets would need an Australian Financial Services License (AFSL). Licensed firms would also have to follow rules governing the protection of client assets, risk management, and customer disclosures.
Lawmakers say the plan targets gaps in the current system. Some crypto firms are allowed to hold large amounts of customer funds without protections common in traditional finance. Bringing these intermediaries into existing financial-services law could give customers stronger safeguards.
The bill also sets clear definitions for key terms. These include “digital tokens,” “digital asset platforms,” and “tokenized custody platforms.” Focus mainly targets companies that manage customer assets rather than the blockchain networks themselves.
Australia’s Crypto Framework Includes Exemptions for Small Providers
Australia has already moved toward stricter oversight of the crypto sector. Crypto exchanges must register with AUSTRAC and comply with anti-money-laundering and counter-terrorism financing rules. At the same time, the Treasury has held consultations to examine how digital-asset services should fit within the country’s broader financial regulatory system.
The proposed framework also offers limited relief for smaller companies. Firms that handle less than 10 million Australian dollars in digital assets would not need to obtain the new license. Some public blockchain infrastructure providers could also fall under this exemption.
Companies that do not currently hold an Australian Financial Services License (AFSL) would be given time to adjust. If the legislation becomes law, affected businesses would receive a six-month transition period to meet the new licensing and compliance requirements.
