Australia’s Treasury has released a new draft legislation that could significantly change the landscape for cryptocurrency exchanges and service providers operating in the country. Under the proposed changes, digital asset platforms (DAPs) and tokenized custody platforms (TCPs) will be regulated as financial products, bringing them under the same legal framework that governs traditional financial services.
New Licensing Requirements for Crypto Platforms
The proposed legislation seeks to amend the Corporations Act 2001, requiring crypto exchanges and certain service providers to obtain an Australian Financial Services (AFS) license. This would effectively treat them like banks, stockbrokers, and other licensed intermediaries.
The changes are aimed at platforms that hold or manage digital assets on behalf of customers, rather than targeting the assets themselves. This includes trading platforms, brokerages, and services managing tokenized versions of real-world assets such as real estate or commodities.
Australian regulators, including the Australian Securities and Investments Commission (ASIC), will be responsible for issuing these new licenses. The government’s goal is to improve consumer protection, especially after several high-profile failures in the crypto sector that led to significant financial losses for retail investors.
Focus on Consumer Protection and Market Stability
Assistant Treasurer Daniel Mulino emphasized that the new rules are designed to expand existing financial laws in a “targeted way.” By applying existing licensing and oversight mechanisms to digital asset services, the government hopes to prevent fraud, enhance transparency, and stabilize a rapidly growing sector that has often operated in legal grey areas.
This regulatory shift is seen as a proactive response to the risks posed by unregulated crypto platforms. It reflects a broader global trend toward stricter oversight in the digital asset space.
Public consultation on the draft legislation is now open and will continue until October 24, 2025. This gives industry stakeholders, investors, and the general public an opportunity to weigh in before the proposed rules become law.
If passed, the legislation will mark a major milestone in Australia’s journey toward a safer, more transparent, and more reliable crypto market.
