Australia Pushes Forward With Licensing Law for Crypto Platforms Under Financial Regulatory Framework

• The new bill mandates most crypto platforms in Australia to obtain an Australian Financial Services Licence.
• Exemptions apply to small operators, while larger platforms must meet full governance and risk management standards.
• Tokenized assets will be integrated under existing laws, with potential productivity gains of up to A$24 billion annually.

Australia is taking firm steps to bring cryptocurrency businesses under the same rules applied to traditional finance. A new bill, introduced in Parliament this week, aims to end the separate treatment of digital asset platforms by requiring most operators to secure an Australian Financial Services Licence (AFSL). The move marks the beginning of comprehensive financial regulation over the country’s growing crypto sector.

Stronger Rules for Digital Asset Companies

The proposed Corporations Amendment (Digital Assets Framework) Bill 2025 introduces strict licensing conditions for businesses dealing with digital assets. This shift would require crypto firms to meet governance, disclosure, and customer protection standards long required of financial service providers. The bill ends the previous lighter-touch framework, where exchanges only followed anti-money-laundering and identity verification laws.

Under the new requirements, platforms managing tokenized assets such as real estate must follow existing legal standards. These include property law, tax guides, criminal accountability, and insolvency rules. Operators must also offer open information to users about how digital assets are managed and protected.

Exemptions for Smaller Players

The bill provides exemptions for low-risk entities handling small balances and low yearly transaction volumes. These carve-outs mirror financial product rules already in place for similar low-impact services. However, large platforms are expected to implement advanced risk management procedures and follow strict conduct rules to protect consumers.

Assistant Treasurer Daniel Mulino stated the law seeks to strengthen consumer safety while supporting a stable crypto environment. The government sees this as necessary, with millions of Australians now active in digital asset markets. Treasury officials explained that incorporating crypto under existing laws closes a long-standing regulatory gap.

Focus on Tokenization and Economic Growth

According to Treasury, digitizing real-world financial products could deliver productivity gains estimated at up to A$24 billion annually. The bill treats tokenized instruments as part of the mainstream economy, rather than as a separate financial class. This integration reflects a broader plan to modernize how assets are issued, stored, and traded in Australia.

The Australian Securities and Investments Commission (ASIC) recently clarified legal obligations for tokenized products. ASIC has also increased pressure on unlicensed providers, signaling stronger enforcement ahead. Chair Joe Longo encouraged further steps to ensure the country remains competitive in digital financial services. If passed, the bill will place Australia among the jurisdictions moving toward tighter regulation of digital assets, aligning crypto with existing financial laws.