Australia backs bill to license crypto platforms

TLDR

Australia is moving toward licensing crypto platforms under existing financial services laws after a key Senate committee backed a new digital assets bill.

1. The Corporations Amendment (Digital Assets Framework) Bill 2025 would require many crypto platforms and custodians to hold an Australian Financial Services Licence.
2. Exchanges and tokenization platforms that hold customer assets face stricter custody, disclosure, and governance rules, while some small providers and pure infrastructure are partly exempt.
3. The bill is not law yet, so the next steps are Senate debate, final passage, and a transition period that will determine how hard the rules bite in practice.

Deep Dive

1. What The Bill Actually Does

Australias Senate Economics Legislation Committee has endorsed the Corporations Amendment (Digital Assets Framework) Bill 2025, recommending it move forward in Parliament as the countrys first comprehensive framework for digital asset platforms here.

The bill would amend the Corporations Act 2001 and the ASIC Act 2001 to treat digital asset platforms and tokenised custody platforms as financial products, bringing most centralized exchanges and tokenized custody businesses into the Australian Financial Services Licence (AFSL) regime described here.

Regulation is aimed at intermediaries that hold or manage digital tokens for customers, not the underlying blockchains themselves.

2. How It Impacts Platforms And Users

Licensed platforms would need to meet ASIC custody and settlement standards, follow tailored disclosure rules for retail clients, and comply with conduct and governance requirements, similar in spirit to banks and brokers outlined here.

Firms that already must register with AUSTRAC for anti money laundering rules would now also face a clearer market conduct regime, including stronger requirements for segregating client assets and managing conflicts of interest summarized here.

There is an exemption for small providers below roughly 10 million Australian dollars in annual transactions, and the bill intends to keep non custodial blockchain infrastructure largely outside scope, though industry groups warn that broad concepts like digital token and factual control could unintentionally pull in wallet or MPC infrastructure.

3. What To Watch Next

The committees backing is a strong political signal, but the bill still has to pass full Senate debate and other parliamentary stages before it becomes law noted here.

If enacted, current providers without an AFSL would typically have around six months to obtain a licence and adjust operations, which could force some offshore or smaller exchanges to exit the market or consolidate.

Globally, the framework is broadly aligned with the same risk, same regulation approach seen in the EUs MiCA, so multi jurisdictional platforms will be watching how closely the final rules map to other major markets.

Conclusion

Australia is positioning itself to fold crypto platforms into its mainstream financial regulatory perimeter, focusing on custody of client assets rather than the technology itself.

If the bill passes in its current form, expect a more regulated but potentially more concentrated exchange landscape in Australia, and watch the transition period for signals on which platforms adapt, exit, or face enforcement pressure.