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Law and Crypto: Australia Takes Bold Steps to Regulate Digital Asset Platforms

Australia is making significant moves to regulate cryptocurrency exchanges and custody platforms through the new Corporations Amendment (Digital Assets Framework) Bill 2025.

The government asserts that this legislation could unleash $24 billion in annual productivity gains while imposing heavy penalties on firms that fail to adequately protect client assets.

This bill introduces a comprehensive regulatory framework for businesses managing digital assets on behalf of customers, marking a major shift in how the crypto industry operates in Australia.

Two new financial product categories will be established: digital asset platforms, which handle clients' crypto transactions, and tokenized custody platforms for real-world assets.

Operators will be required to obtain an Australian Financial Services Licence and adhere to standards set by the Australian Securities and Investments Commission (ASIC).

However, low-risk platforms can operate without full licensing, which is designed to support early-stage experimentation in the industry.

Despite these advancements, industry experts express concerns about the clarity of the legislation and its implementation in practice.

There is a general sentiment among stakeholders that Australia is lagging behind other markets in terms of clear digital-asset regulation.

Additionally, calls for more holistic reforms that include tax clarity and comprehensive definitions are growing among industry leaders.

As Australia forges ahead with this legislation, the evolving landscape of crypto regulation will be closely watched by both domestic and international stakeholders.