Australia Crypto Regulation Bill Sparks Industry Shake-Up
Australia is charging into a new era of digital finance with the introduction of the Corporations Amendment (Digital Assets Framework) Bill 2025, a regulatory overhaul designed to bring crypto platforms under the country’s existing financial services laws. The bill was introduced to Parliament by Assistant Treasurer Daniel Mulino, who declared that Australia cannot afford to fall behind in the global race toward financial innovation.
“Digital assets are reshaping finance across the world,” Mulino said during his address. “If we get this right, Australia can attract investment, create new jobs, and strengthen its position as a leader in financial innovation.”
This ambitious move follows a nationwide consultation launched in September, where government officials gathered feedback from crypto businesses, investors, and legal experts — many of whom supported regulation but urged greater clarity.
New Safeguards Aim to Prevent Another FTX-Style Collapse
Mulino emphasized that under current laws, a company can hold unlimited amounts of customer crypto without being bound by traditional financial safeguards. This regulatory void has exposed consumers to devastating risks, including scams, mismanagement, and the type of catastrophic fraud seen in the FTX collapse.
The new Australia crypto regulation bill aims to close those gaps with rules designed to ensure that comparable financial services face comparable obligations, even within the evolving digital asset sector.
The legislation shifts the regulatory spotlight to companies that hold customer crypto, rather than targeting the underlying blockchain technology — a flexible approach intended to accommodate future innovations in tokenization and digital services.
Also Read : Historic US Government Shutdown Ends; Funding Bill Passes and Other Updates
Two New License Types for Crypto and Tokenized Custody
One of the bill’s most transformative features is the creation of two new categories within the Corporations Act:
- Digital Asset Platform
- Tokenized Custody Platform
Both will require an Australian Financial Services License (AFSL) and will fall under the oversight of the Australian Securities and Investments Commission (ASIC).
This means that any business advising on, dealing in, or arranging crypto transactions will be legally recognized as providing financial services — and must operate under the same standards as traditional financial institutions.
Stricter Standards, Client Protections, and Transparency Requirements
Crypto exchanges and custody providers will be required to meet ASIC’s minimum standards for:
- Transaction execution
- Settlement processes
- Secure storage of customer assets
Platforms must also deliver clear, plain-English guides outlining service details, risks, fees, and operational practices.
These measures aim to establish a transparent, trust-focused framework that protects Australian consumers while supporting responsible industry growth.
Relief for Small Players: Licensing Exemptions for Low-Volume Firms
To prevent excessive barriers for startups and small innovators, the bill includes exemptions for “small-scale” companies that conduct under AUD 10 million (US$6.5 million) in transactions over 12 months.
Those offering crypto services only as a minor, incidental part of their primary non-financial business are also exempt.
Businesses covered by the new law will have an 18-month transition period, offering ample time to meet licensing requirements and adjust their operations.
Political Path: Swift Passage Expected in Parliament
With the Labor Party commanding a strong majority in the House of Representatives, the bill is expected to pass swiftly before moving to the Senate. There, Labor may need support from opposition parties or crossbench members, but early indications suggest broad political and industry backing.
Conclusion
The Australia crypto regulation bill marks one of the country’s most significant policy shifts in years — a bold attempt to marry innovation with consumer protection.
If successful, it could position Australia as a global leader in digital asset oversight, encourage institutional investment, and prevent the chaotic collapses that have shaken the crypto world in recent years.
