Australia introduces a digital assets framework bill to license crypto platforms under asic, aiming to protect consumers and boost market confidence.
Summary
- Government bill would force most digital asset and tokenized custody platforms to obtain an afsl and comply with asic oversight and conduct rules.
- Framework adds tailored licensing thresholds, exempting low-volume platforms while aligning larger players with traditional financial services regimes.
- Officials argue clearer rules will reduce risks exposed by past exchange failures and attract domestic and global crypto businesses to Australia.
Australia’s government tabled legislation in Parliament on Nov. 27, 2025, aimed at regulating digital asset platforms and protecting consumers in the cryptocurrency sector, according to official statements.
The Corporations Amendment (Digital Assets Framework) Bill 2025 would require digital asset and tokenized custody platforms to obtain Australian Financial Services Licences (AFSL) and operate under supervision by the Australian Securities and Investments Commission (ASIC).
The Albanese Government stated that millions of Australians interact with digital assets annually, including cryptocurrencies, stablecoins and tokenized real-world assets such as property, commodities and government bonds. Officials noted that existing legal frameworks have not kept pace with adoption rates.
Under current regulations, businesses can hold unlimited customer digital assets without safeguards applied to traditional financial services, according to government statements. Officials cited global exchange failures as evidence of investor exposure to risk under the current system.
The bill establishes two new regulated financial product categories: Digital Asset Platforms and Tokenized Custody Platforms. Businesses operating in these categories would be required to hold an AFSL and comply with obligations including acting efficiently and honestly, avoiding misleading conduct, maintaining governance structures and providing disclosures about asset storage and client rights.
The government stated that licensing requirements would be tailored to reflect the risk profile of digital asset infrastructure. Platforms handling less than $5,000 per customer and processing under $10 million annually would be exempt, mirroring exemptions for other financial products such as non-cash payment facilities.
Research from the Digital Finance Cooperative Research Centre cited by the government suggests Australia could save or generate up to $24 billion annually if digital finance infrastructure is fully developed.
Officials stated the legislation aims to strengthen market confidence through requirements for fair dealing, transparency and dispute resolution processes. The government said the framework is designed to encourage domestic and international businesses to operate in Australia under clear regulatory standards.
The Albanese Government described the bill as part of its economic modernization agenda, stating that Australia must build a regulatory system that protects investors while allowing local businesses to compete in the digital asset sector.
The legislation would place digital asset exchanges and custodians under the same licensing regime as traditional financial services providers, according to the bill’s provisions.
