Australia has introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 to require digital asset platforms and tokenized custody providers to hold an Australian Financial Services Licence and come under ASIC oversight.

The framework creates two license categories—digital asset platform and tokenized custody platform—to reflect different roles in holding and moving customer funds.

The bill aims to establish the first comprehensive regulation for digital assets in Australia, focusing on consumer protection and market confidence for companies that store crypto for customers.

Treasury-led consultation in September drew broad industry support but called for greater clarity and simplification.

The legislation advances to the second reading in Parliament, with government touting potential productivity gains, investment attraction, and stronger consumer protections, while smaller players warn of compliance costs.

An 18‑month transitional period is provided for affected firms to obtain licenses, intended to avoid abrupt disruption.

Industry views vary: phased licensing could help early-stage projects test ideas, but concerns remain about costs and feasibility; framework emphasizes regulating custodial services rather than the technology itself.

The act seeks to close consumer protection gaps, align with global developments, and address risks highlighted by past failures like FTX through stronger enforcement.

Regulation targets platform operators rather than the underlying blockchain technology, allowing adaptability amid ongoing tokenization and digital service development.

Licensed platforms must meet custody, settlement, and transparency rules, with service guides on fees, risks, and asset management; smaller operators under thresholds will face lighter regulatory requirements to foster innovation.

Treasury describes reforms as a cornerstone of a digital asset roadmap, balancing opportunity with safeguards against asset mismanagement.

Regulatory context includes measures on crypto ATMs and ongoing ASIC actions against crypto scams, signaling broad consumer protection efforts.