Australia’s Federal Government has formally initiated a comprehensive regulatory framework for digital asset custody and exchange platforms. The Corporations Amendment (Digital Assets Framework) Bill 2025 was introduced to Parliament on Wednesday by Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino. This landmark legislation establishes the nation’s first bespoke rules for businesses that hold digital assets on behalf of customers.
New Product Classes, Mandatory Licensing in Australia
The core of the new legislation is the establishment of two distinct financial product categories under the Corporations Act. The first, Digital Asset Platforms, targets facilities where operators hold client crypto assets and provide transactional functions, such as buying, selling, or staking. The second, Tokenized Custody Platforms, covers operators handling real-world assets, like property or bonds, and issuing redeemable digital tokens representing the underlying asset.
Operators of both platform types will be required to hold an Australian Financial Services Licence (AFSL). This mandate imposes strict compliance obligations, including the requirement to act “efficiently, honestly and fairly,” adhere to ASIC’s custody and settlement standards, and provide robust protections for client assets. Penalties for non-compliance may run into the multimillions, which reflects the government’s focus on consumer protection.
Institutional Context and Industry Feedback
The government asserts the legislation is necessary to close regulatory voids that have left billions in client assets vulnerable, a risk highlighted by recent global crypto platform collapses. By imposing clear financial sector safeguards on digital asset custodians, officials believe the bill can unlock approximately $24 billion in annual productivity gains for the Australian economy. This institutional clarity is intended to foster confidence and attract both domestic and international investment.
The officials wrote:
“We take Australia’s crypto industry seriously, and we know that blockchain and digital assets present big opportunities for our economy, our financial sector, and our businesses.”
However, industry experts maintain that the framework still presents challenges. While low-risk operators (those holding under $5,000 per customer and facilitating less than $10 million in annual volume) are exempt from full AFSL requirements, the wider compliance costs remain a concern. Critics argue that Australia has fallen behind other global jurisdictions in establishing a clear digital asset regime, and further regulatory clarity, particularly concerning taxation, is still needed.
