Australia has moved its digital-asset sector into a more formal regulatory era after Parliament approved the Corporations Amendment (Digital Assets Framework) Bill 2025 on April 1, 2026. The new law places cryptocurrency exchanges and token custody providers inside the Australian Financial Services Licence regime, ending a long period in which many core crypto activities operated outside the full scope of traditional financial-services regulation.
The change is designed to bring digital-asset platforms closer to the standards already applied to conventional financial intermediaries. For users and market participants, the practical effect is that platforms handling client tokens will now face stricter rules on licensing, custody, governance, disclosure and solvency.
A broader regulatory perimeter for crypto platforms
Under the new framework, Digital Asset Platforms and Tokenized Custody Platforms that hold or record client interests in tokens must obtain an AFSL from the Australian Securities and Investments Commission. That requirement creates a direct licensing obligation for firms involved in holding, trading or recording customer digital assets, rather than leaving those functions in a lighter or partially defined regulatory space.
The law also introduces stronger custody and governance expectations. Platforms will be required to segregate client assets, maintain secure private-key management, produce audited financial statements and participate in external dispute resolution mechanisms such as AFCA. In effect, the bill pushes crypto businesses toward operating standards that look much more like those of established financial institutions.
Prudential expectations are also becoming more explicit. Minimum net tangible asset thresholds, solvency buffers and broader financial reporting obligations will now form part of the compliance burden for licensed operators. That shift matters because it ties market access not only to conduct rules, but also to financial resilience.
Higher compliance costs, but clearer protections
Australia is not replacing its financial-crime framework with this legislation, but layering on top of it. Digital Currency Exchange providers will still need to register with AUSTRAC and maintain AML and CTF programs, including KYC and transaction reporting, while ASIC takes a stronger role over conduct, disclosure and platform risk. The result is a dual structure in which financial-crime oversight and market-conduct oversight now operate side by side.
The enforcement side of the regime is also being strengthened. ASIC will gain expanded rule-making authority and civil penalty powers, with non-compliance potentially leading to fines of up to A$16.5 million or a proportion of turnover or profit. That sharper enforcement backdrop is likely to force platforms to treat licensing preparation as an immediate operational priority rather than a distant legal formality.
The law gives firms 18 months after royal assent to adjust their systems, strengthen controls and complete AFSL applications. That transition window offers time to adapt, but it also creates a defined timetable that is likely to accelerate consolidation, especially among smaller operators facing higher compliance costs and longer operational lead times. Limited exemptions remain for very small providers handling less than A$5,000 per customer and under A$10 million in yearly transactions, but the broader direction is unmistakably toward tighter oversight.
Exchanges and custodians will need to redesign custody architecture, reinforce governance and prepare audited accounts, while retail users should see stronger transparency, more formal recourse mechanisms and clearer standards around platform safety.