Australia’s government has introduced a new bill that will regulate crypto platforms under existing financial services laws after an industry consultation saw cautious support for the legislation.
Assistant Treasurer Daniel Mulino introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 on Wednesday, which would require crypto companies such as exchanges and custody providers to obtain an Australian Financial Services License (AFSL).
“Across the world, digital assets are reshaping finance,” Mulino told the House on Wednesday. “Australia must keep pace. If we get this right, we can attract investment, create jobs and position our financial system as a leader in innovation.”
The Treasury launched a consultation over a draft of the bill in September, which Mulino told crypto conferencegoers was “the cornerstone” of the Albanese Government’s crypto roadmap released in March.
The local crypto industry largely supported the draft legislation, but many told the consultation that the bill needed further clarity and simplification.
New bill to include safeguards for crypto held for clients
Mulino told the House it’s currently possible for a company to hold an unlimited amount of client crypto “without any financial law safeguards,” adding the risks of scams or frauds like FTX “cannot be ignored.”
“This bill responds to those challenges by reducing loopholes and ensuring comparable activities face comparable obligations, tailored to the digital asset ecosystem,” he said.
Currently, crypto platforms that simply facilitate trading only need to register with the Australian Transaction Reports and Analysis Centre, which has 400 registered crypto exchanges, many of which are inactive.
The legislation would focus on the companies that hold crypto for customers, “rather than the underlying technology itself,” Mulino added. “This means it can evolve as new forms of tokenisation and digital services emerge.”
Crypto bill adds two new license types, exempts small players
The bill amends the Corporations Act to create two new financial products, a “digital asset platform” and a “tokenized custody platform,” both of which will need an AFSL.
The license will register the platforms with the Australian Securities and Investments Commission. Currently, only exchanges that sell “financial products,” such as derivatives, must register.
Mulino said anyone “advising on, dealing in, or arranging for others to deal in” crypto will be treated as providing a financial service that requires a license.
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Under the bill, crypto and custody platforms must meet ASIC’s minimum standards for transactions, settlements and holding customer assets. They must also give a guide to clients explaining their service, fees and risks.
Mulino said the bill exempts “small-scale” companies from licensing, those with less than 10 million Australian dollars ($6.5 million) in transaction volume in 12 months, along with those that deal or advise on platforms “incidental to their main, non-financial activities.”
The bill outlines an 18-month grace period on licensing, which Mulino said gives “relief for businesses trying to do the right thing.”
The bill is likely to quickly pass the House, where Prime Minister Anthony Albanese’s center-left Labor Party holds a 94-seat majority. It will then head to the Senate, where Labor may need the support of the crossbench and opposition to pass it.
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