Australia has enacted its first comprehensive regulatory framework for digital assets, bringing cryptocurrency exchanges and custody providers under formal financial services oversight for the first time.
The Corporations Amendment (Digital Assets Framework) Bill 2025 cleared both houses of parliament on Wednesday, April 1.
The passage marks the end of a years-long push to bring the crypto sector under rules comparable to those governing traditional financial institutions.
What the law does
The legislation creates two new regulated categories digital asset platforms and tokenized custody platforms bringing them under the same core rules that apply to brokers and fund managers.
Licensed platforms must follow rules governing how they trade, settle transactions, and keep consumer assets safe.
They are also required to be transparent about fees, risks, and how customer assets are stored and used.
Crucially, licensed platforms must keep client money separate from corporate funds and provide customers with clear information about the risks involved.
Not every operator will be captured. Small platforms handling less than A$5,000 per customer and under A$10 million in yearly transactions can qualify for an exemption a carveout designed to prevent excessive compliance costs from overwhelming very small or experimental services.
A different approach from the EU
Rather than building a standalone crypto regime, Australia opted to route oversight through its existing licensing architecture.
This approach extends the regulatory perimeter of the Australian Securities and Investments Commission (ASIC) to cover crypto platforms, rather than creating an entirely new framework, a different path from the European Union’s standalone Markets in Crypto-Assets (MiCA) regulation.
The country operates a dual-regulator model, with AUSTRAC handling anti-money laundering and counter-terrorism financing oversight, and ASIC covering consumer protection.
Transition timeline
Platforms will not be expected to comply immediately.
Operators have a 12-month preparation period after Royal Assent, followed by an additional six-month transition window during which they must submit an application and bring operations into compliance.
ASIC has also issued a no-action letter allowing temporary operation without a licence until June 30, 2026.
Industry reaction
Reception from major players has been broadly positive.
A Kraken spokesperson said the law provides a “top-down signal” that Australia is serious about digital assets, adding that clearer rules would give firms the confidence to invest and expand locally.
Kate Cooper, CEO of OKX Australia, called it a “pivotal moment” that establishes a foundation for institutional participation and long-term capital allocation.
Caroline Bowler, then-CEO of BTC Markets, had earlier described the government’s approach as “a pragmatic, grounded statement.”
Smaller operators are less enthusiastic. Industry groups have flagged concerns about vague definitions in the bill’s language.
Broad wording around terms like “digital token” and “factual control” could inadvertently capture infrastructure providers, including multi-party wallet systems, potentially classifying them as financial service operators.
Ripple Labs specifically called for more precise language to avoid unintended regulation.
The bigger picture
Policymakers have framed the legislation as a way to position Australia to capture a larger share of an estimated A$24 billion annual digital finance opportunity.
Assistant Treasurer Daniel Mulino, who co-introduced the bill alongside Treasurer Jim Chalmers, framed the legislation as a way to “unlock innovation and safeguard” consumers in the digital asset sector.
The law follows a series of regulatory steps that have accelerated over the past year, including AUSTRAC rules capping crypto ATM cash transactions and an updated anti-money laundering framework set to become mandatory by July 2026.
Further refinements to the digital assets regime are expected as the market develops.
