Assistant Treasurer Daniel Mulino submitted the "2025 Corporations Amendment (Digital Asset Framework) Bill" to the House of Representatives this Wednesday, marking a pivotal moment in Australia’s digital asset regulatory history.
For the first time, this bill brings crypto trading platforms and custodial service providers under the existing financial services regulatory regime, requiring them to obtain an Australian Financial Services License (AFSL) and operate under the supervision of the Australian Securities and Investments Commission (ASIC).
"Globally, digital assets are reshaping finance," Mulino stated in Parliament. "Australia must keep pace. If we get this right, we can attract investment, create jobs, and position our financial system at the forefront of innovation."
01 Filling the Regulatory Gap
Before the introduction of a comprehensive crypto regulatory framework, Australia’s digital asset market operated in a regulatory gray area.
Currently, crypto platforms that only facilitate trading need to register with the Australian Transaction Reports and Analysis Centre, which lists 400 registered crypto exchanges—many of which are inactive.
Mulino pointed out in the House that, under the current system, companies can hold unlimited amounts of customer crypto assets "without any financial legal safeguards," making risks of fraud or scams similar to FTX "impossible to ignore."
This new bill aims to close regulatory loopholes, ensure comparable activities face comparable obligations, and tailor regulatory requirements to the digital asset ecosystem to address these challenges.
02 Dual Regulatory Categories
The Australian government’s regulatory framework creatively introduces two new categories of financial products.
The bill amends the Corporations Act to add "digital asset platforms" and "tokenized custody platforms" as new financial product types, both requiring an AFSL license.
Digital asset platforms primarily cover traditional crypto trading services, such as facilitating the buying, selling, and trading of cryptocurrencies.
Tokenized custody platforms involve more complex services, such as issuing redeemable tokens to manage real-world assets like real estate or commodities.
This classification approach reflects Australian regulators’ recognition of the diversity within the digital asset ecosystem.
03 Platform Compliance Requirements
Under the new bill, licensed crypto and custody platforms must meet ASIC’s minimum standards for trading, settlement, and safeguarding client assets.
Platforms must operate "efficiently, honestly, and fairly," providing clients with clear service guidelines that detail their offerings, fee structures, and associated risks.
Mulino made it clear that any activity "providing advice on crypto, engaging in trading, or arranging trades for others" will be considered a financial service and thus requires the appropriate license.
These provisions effectively raise crypto platforms to the same compliance standards as traditional financial institutions, fundamentally transforming the operating environment of Australia’s crypto market.
04 Exemptions for Small Enterprises
Importantly, the bill does not take a "one-size-fits-all" approach, instead offering exemptions for smaller participants.
Companies are exempt from licensing requirements if they are classified as "small-scale," meaning their transaction volume is less than AUD 10 million (about USD 6.5 million) over 12 months.
Additionally, entities conducting trades or providing advice on platforms "ancillary to their primary non-financial activities" can also qualify for exemptions.
Another exemption applies to platforms holding less than AUD 5,000 in assets per client.
This tiered regulatory approach aims to ease the compliance burden on startups and small projects while ensuring major market players adhere to strict investor protection standards.
05 18-Month Transition Period
To ensure a smooth transition to the new regulatory framework, the bill provides an 18-month licensing grace period.
This extended transition gives "businesses striving for compliance" ample time to adjust their operating models, prepare application materials, and complete registration.
Furthermore, the Australian government is offering transitional relief until mid-2026, further assisting firms in adapting to new licensing and compliance requirements.
This phased implementation demonstrates regulators’ commitment to market stability, helping avoid disruption from sudden policy changes.
06 Economic Impact Outlook
Australia’s regulatory framework aims not only to protect investors but also to deliver clear economic benefits.
The government estimates that the framework could unlock up to AUD 24 billion in annual productivity gains through tokenization and digital finance.
At the same time, companies failing to safeguard client assets face multimillion-dollar fines, underscoring the seriousness of the regulations.
In the explanatory memorandum accompanying the bill, the Treasury notes that digital assets "will be subject to the same general legal framework as other assets, including property, consumer, bankruptcy, criminal, family, and tax law."
This comprehensive legal integration will further solidify the role of digital assets in Australia’s economy.
07 Global Regulatory Alignment
Australia’s crypto regulatory framework does not exist in isolation; it aligns with global regulatory trends.
This move keeps Australia in step with jurisdictions like the EU, Singapore, and the UK, which have already established or are implementing comprehensive crypto asset regulations.
Notably, Australia’s approach to stablecoins—classifying them as financial products—mirrors international regulatory attention on stablecoins.
Mulino emphasized that the legislation will focus on companies holding crypto assets for clients "rather than the technology itself," meaning "as new forms of tokenization and digital services emerge, it can continue to evolve."
This technology-neutral principle lays the foundation for the long-term relevance of the regulatory framework.
08 Industry Response and Future Outlook
The local crypto industry has generally welcomed the draft regulations, though many participants have called for further clarification and simplification during the consultation process.
Industry representatives appreciate the regulatory clarity but also advocate for simpler rules and more precise definitions.
Experts believe that, despite potential implementation challenges, the framework marks a significant step toward the maturity of Australia’s digital asset market.
For crypto trading platforms like Gate, the new framework provides clear compliance guidelines while raising operational standards.
During the 18-month transition period, platforms will need to proactively prepare AFSL application materials and adjust internal compliance structures to ensure full readiness when the regulations take effect.
Looking Ahead
A new era for Australia’s crypto market is on the horizon. With the 18-month transition period underway, exchanges like Gate have ample time to adapt their business practices to meet new licensing requirements.
As regulatory clarity improves, Australia is poised to attract more institutional capital to its digital asset market.
This Asia-Pacific nation is demonstrating that regulatory transparency is not a barrier to innovation, but rather the foundation for industry maturity and growth.
