The Australian government has introduced new legislation to parliament aimed at bringing cryptocurrency platforms under the country’s formal financial services licensing regime. The move signals a significant step toward tighter oversight of the rapidly expanding digital asset sector.

The Corporations Amendment (Digital Assets Framework) Bill 2025, submitted on Wednesday, would require digital asset platforms and tokenized custody providers to obtain an Australian Financial Services Licence (AFSL) to operate legally. According to an explanatory memo, the new law is designed to ensure digital assets are “subject to the same general legal frameworks as other assets,” including property, consumer, and tax laws.

In a statement, the Treasury noted that the bill seeks to align crypto service operators with the consumer protection and conduct standards that govern traditional financial services. “Millions of Australians are using or investing in digital assets every year and this is about making that as safe and secure as possible, while also encouraging innovation,” said Assistant Treasurer Daniel Mulino.

New Obligations for Licensed Platforms

Under the proposed framework, licensed platforms would need to adhere to a strict set of new obligations. These include a requirement to act “efficiently, honestly and fairly,” maintain robust governance and risk controls, and provide clear disclosures on how customer assets are stored. The bill also mandates that platforms avoid misleading conduct and offer effective dispute-resolution and compensation mechanisms.

However, the new rules are tailored to reflect the unique nature of crypto businesses and include exemptions for smaller operators. Platforms holding less than A$5,000 ($3,263) per customer and facilitating under A$10 million ($6.5 million) in annual transactions will be exempt, a carve-out similar to those for other low-risk financial products. Currently, crypto exchanges in Australia are primarily required to comply with anti-money laundering and know-your-customer regulations.

Scope and Regulatory Context

The proposed framework applies broadly, covering both native crypto assets like Bitcoin and stablecoins, as well as tokenized representations of real-world assets such as bonds, property, and commodities. The Treasury highlighted the economic upside, citing research that suggests tokenization and digital finance could unlock up to A$24 billion ($15.6 billion) in annual productivity and savings.

This legislation builds on recent efforts by the Australian Securities and Investments Commission (ASIC). Last month, the regulator clarified how tokenized financial products fit within existing law and signaled stricter enforcement against unlicensed crypto business models. ASIC Chair Joe Longo recently stated that the country must “seize the opportunity or be left behind” as tokenization transforms global capital markets.