Australia Passes Crypto Licensing Law, Tightening Rules for Digital Asset Platforms

Australia has passed a new digital assets bill that will require many crypto platforms to hold a financial services license, marking one of the country’s clearest moves yet to bring the sector under mainstream financial regulation. The Corporations Amendment (Digital Assets Framework) Bill 2025 passed both houses of Parliament and now sets a licensing standard for businesses that hold digital assets for consumers. Under the framework, companies operating as digital asset platforms or tokenized custody platforms will need an Australian Financial Services Licence. The law adds a new layer of oversight for crypto firms that already face anti money laundering and know your customer obligations. It also places digital asset businesses more directly within Australia’s existing financial system instead of creating a separate crypto rulebook. New licensing rules target custody and consumer protection The new law focuses on firms that hold customer digital assets. Treasury said the framework closes a gap that had allowed some businesses to hold unlimited client assets without equivalent safeguards under financial services law. Licensed platforms will need to meet a range of obligations. These include acting efficiently, honestly and fairly, maintaining governance and risk controls, giving users clear information about how assets are stored, and offering dispute resolution and compensation arrangements. Treasury also included an exemption for smaller operators. Platforms holding less than A$5,000 per customer and processing less than A$10 million in annual transactions will not fall under the licensing requirement, according to the government’s outline. Australia adds crypto oversight on top of AML rules The new law does not replace Australia’s existing anti money laundering framework . Instead, it works alongside AUSTRAC rules that already apply to some digital asset services and will expand further from July 1, 2026. That means many firms may soon face two separate compliance tracks. First, they may need to meet AUSTRAC obligations for services such as crypto exchange, custody, and transfers. Then, if they fall within the new legal categories, they may also need an AFSL under the Corporations Act. The bill reflects Australia’s broader push to replace fragmented crypto oversight with a clearer legal structure. Officials said the aim is to support innovation while strengthening consumer protections after a series of global crypto failures. Industry participants will now watch for the next stage, including final assent, transition periods, and detailed guidance on how the rules will apply in practice.