Australia Advances Bill to Bring Crypto Platforms Under Financial Services Regulation

Australia has moved ahead with a legislative proposal that would bring crypto platforms under the country’s existing financial services regulatory framework. The new bill, known as the Corporations Amendment (Digital Assets Framework) Bill 2025, was introduced to Parliament with the goal of placing exchanges and custody providers under the same licensing system used for traditional financial institutions.

The proposal follows months of industry consultation that generally welcomed clearer rules but called for refinements to reduce complexity. The government argues that crypto businesses holding customer assets should meet the same baseline standards as any other financial service, especially in light of global failures that revealed gaps in consumer protections.

Under current arrangements, platforms that merely facilitate crypto trades need only register with the financial intelligence agency AUSTRAC. More than 400 companies hold that registration, though many are no longer active. The new bill shifts regulatory focus to businesses that store customer assets, aiming to limit risk without restricting innovation in digital asset technology.

New Categories and Licensing Requirements

The legislation adds two new classifications under the Corporations Act: digital asset platforms and tokenized custody platforms. Any business operating under these categories would need to secure an Australian Financial Services License. This expansion brings a wider group of crypto-related services under the supervision of the Australian Securities and Investments Commission.

The bill also clarifies that anyone involved in arranging, advising on, or facilitating transactions in crypto assets would be considered a financial services provider and therefore require licensing. Platforms covered by the rules must meet established standards for settlement processes, transaction handling, and the safeguarding of client assets. They must also provide clear guidance to customers on how their services work, including associated risks and fees.

Exemptions and Transition Timeline

Not all operators are expected to participate in the full licensing regime. The bill excludes smaller firms processing under 10 million Australian dollars in transaction volume annually, as well as businesses for which digital asset activity is incidental to their primary operations. Lawmakers have also built in an 18-month transition period to give companies time to adapt to the new requirements.

Legislative Outlook

The bill is expected to move quickly through the House, where the governing Labor Party holds a strong majority. Once passed, it will proceed to the Senate, where additional support may be needed to finalize the legislation. The government views the framework as foundational for Australia’s long-term crypto strategy, positioning the country to manage risk while encouraging responsible innovation.