TLDR
Australia is moving to bring crypto trading and custody platforms under its mainstream financial licensing regime via a new digital assets law.
- The proposed Digital Assets Framework bill would require platforms holding customer crypto to obtain an Australian Financial Services Licence and creates new licence categories with penalties up to 10% of annual turnover for breaches.
- ASICs 2026 outlook flags digital assets as a key regulatory perimeter risk and backs this with enforcement, including a AU$14 million penalty against Qoin issuer BPS Financial for unlicensed and misleading conduct.
- For users and platforms this likely means stronger consumer protections, higher compliance costs, and a transition period using temporary exemptions while parliament finalizes and implements the rules.
Deep Dive
1. New Licensing Framework
The Corporations Amendment (Digital Assets Framework) Bill 2025 would require crypto exchanges and custody providers that hold customer assets to obtain an Australian Financial Services Licence, effectively folding them into existing financial services law. The bill introduces two new licence categories focused on digital asset platforms and tokenized custody, with penalties for serious breaches of up to 10% of a firms annual turnover, and exempts smaller operators handling less than A$10 million per year. The government estimates this framework could unlock about A$24 billion in annual productivity gains while tightening oversight of platforms that control client funds, according to the proposed Digital Assets Framework bill.
2. ASICs Perimeter And Enforcement
In its Key Issues Outlook 2026, the Australian Securities and Investments Commission (ASIC) groups digital assets with AI and payments as top regulatory perimeter risks and warns that some firms deliberately exploit licensing grey areas. ASIC says its priority is to keep licensing boundaries clear and supervise firms operating near the edge of existing rules, as highlighted in its 2026 perimeter outlook. This policy stance is backed by enforcement, including a Federal Court order that BPS Financial pay AU$14 million and accept a 10?year licensing ban over its Qoin Wallet, after the court found unlicensed conduct and misleading claims about approval, liquidity and merchant acceptance, as detailed in the BPS Financial ruling.
3. Impact On Platforms And Users
If passed, the framework would push larger exchanges and custodians toward full AFSL-style compliance, including conduct, disclosure and risk management standards already familiar in traditional finance. Smaller or lightly capitalized platforms may exit or consolidate rather than meet licence obligations, even though the bill provides exemptions for very small operators and temporary relief for some stablecoin and wrapped-token activities until 20262028 under ASICs no action and class relief settings. For everyday users, the main effects are likely to be stronger legal protections for custody and conduct, but potentially fewer unlicensed high risk venues and more rigorous onboarding and disclosure.
For Australian crypto users, the edge is shifting from unregulated platforms toward licensed ones, so it will matter more which entities hold your assets and what protections their licence actually provides.
Conclusion
Australia is moving from an enforcement-only approach to a full licensing regime that treats major crypto platforms like other financial service providers. The combination of a detailed Digital Assets Framework bill and ASICs perimeter-focused enforcement suggests a future where access to Australian customers increasingly depends on holding an AFSL and meeting traditional standards of disclosure, risk management and consumer protection.
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