Australia Moves Ahead With Major Crypto Regulation Bill — Here’s What It Means
Australia is moving one step closer to bringing crypto under the same rules that apply to traditional finance, and honestly, this could reshape how exchanges operate in the country. The government has just introduced a new bill that would require crypto platforms to follow financial service laws and obtain proper licensing — something the industry has been waiting on for years.
Assistant Treasurer Daniel Mulino presented the Corporations Amendment (Digital Assets Framework) Bill 2025 this week. If it passes, exchanges and custody providers will have to get an Australian Financial Services License (AFSL) just like banks and investment firms. Mulino said something that really sums up their mindset: digital assets are changing global finance, and Australia doesn’t want to fall behind.
The bill has been in discussion since September when the Treasury released a draft version. Most industry players supported it but wanted clearer definitions and simpler rules. Even now, some companies feel that certain areas still need more clarity, but overall the direction has been welcomed.
One thing Mulino stressed is the lack of protection for customers today. A platform can hold large amounts of user assets without any real safeguards. After seeing disasters like FTX, the government clearly doesn’t want to take chances. Mulino said the bill closes loopholes and ensures that similar activities follow similar rules, no matter if they’re crypto or traditional finance.
Right now, trading-only platforms only need to register with AUSTRAC, and there are around 400 registered exchanges — though many aren’t active. The new bill focuses more on companies that hold customer crypto, not the underlying blockchain tech. This approach should help the law stay flexible as tokenization and digital services evolve.
Crypto bill adds two new license types, exempts small players
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The bill also introduces two new financial product categories:
• Digital asset platforms
• Tokenized custody platforms
Both will need an AFSL and will be supervised by the Australian Securities and Investments Commission (ASIC). Anyone giving advice, dealing, or helping others deal in crypto will also fall under financial service rules.
Platforms will need to meet ASIC’s basic standards for transactions, settlements, and safeguarding customer assets. They’ll also have to provide a clear guide explaining their service, fees, and risks — something everyday users will definitely benefit from.
There’s also an exemption for “small-scale” companies handling under 10 million AUD (about 6.5 million USD) in yearly volume, along with businesses that deal with digital assets only as a small part of their main non-financial operations. Plus, the bill offers an 18-month grace period so legitimate businesses have time to adjust.
Since the Labor Party has a strong majority in the House, the bill will probably pass quickly there. The real test will be the Senate, where Labor may need extra support. But from the current momentum, it looks like Australia is ready to lock in a proper regulatory framework for crypto.
My personal take: this kind of regulation was eventually going to happen. If Australia handles it well, it could actually make the environment safer and attract more serious investors. The key is keeping the rules strict enough to prevent scams but flexible enough so innovation doesn’t get choked.