Australia Moves to Bring Crypto Under Full Financial Licensing Regime

Australia is moving to overhaul its approach to digital assets, unveiling a legislative package that would fold crypto platforms into the same regulatory framework that governs the country’s financial industry.

The new Corporations Amendment (Digital Assets Framework) Bill 2025, introduced to parliament this week, would require most crypto businesses to secure an Australian Financial Services Licence, marking the first time the sector is placed squarely under mainstream financial oversight.

The proposal effectively ends the lighter-touch system under which exchanges operated, where compliance focused mainly on anti-money-laundering and identity checks. If passed, firms handling digital assets – including tokenized versions of real-world instruments like property or bonds – would need to meet long-standing standards around disclosure, customer protections, governance controls and dispute-resolution processes. The government says the goal is to close the regulatory gap between crypto providers and traditional finance, noting that millions of Australians now transact with digital assets.

Assistant Treasurer Daniel Mulino described the shift as a way to safeguard consumers without stifling innovation. According to the bill’s explanatory memo, digital assets will be treated within Australia’s broader legal environment, spanning property, tax, criminal and insolvency law.

The licensing obligations will be adapted for the crypto sector, with exemptions for small operators handling limited balances and low annual transaction volumes – a carve-out modeled after rules applied to low-risk financial products. Larger platforms, however, would be held to strict conduct and risk-management standards and must give customers clear information on how assets are stored and safeguarded.

The legislation also reflects the government’s view that tokenization could unlock significant economic gains. Treasury cited research estimating that digitizing financial instruments and real-world assets could generate up to A$24 billion in annual productivity benefits.

The bill follows recent moves by the Australian Securities and Investments Commission to clarify the legal status of tokenized financial products and warn unlicensed providers of stronger enforcement ahead. ASIC Chair Joe Longo recently urged the country to embrace the opportunity presented by digital markets or risk falling behind global leaders.