Australia Tightens Crypto Rules, Requiring Licenses
Australia Tightens Crypto Rules, Requiring Licenses
Australia has passed the Digital Assets Framework Bill 2025, bringing many crypto exchanges and tokenised custody platforms under its financial services licensing regime. Australia tightens crypto rules, requiring platforms to secure financial services licenses.
Introduction to the New Licensing Framework
The Corporations Amendment (Digital Assets Framework) Bill 2025 has cleared both houses of Parliament and moves next to royal assent. This bill amends both the Corporations Act and the ASIC Act, creating a structure that directly regulates digital asset platforms and tokenised custody platforms.
Key Changes to the Licensing Framework
Covered Operators
Crypto operators covered by the framework, including exchanges and custody providers, will need to secure an Australian Financial Services Licence from the Australian Securities and Investments Commission.
- 12-month transition period for businesses to comply
- Additional transition period for firms to adjust governance, licensing strategy, and custody arrangements
Impact on the Digital Asset Sector
The Digital Economy Council of Australia welcomed the move as a long-awaited shift from uncertainty toward implementation. The government addressed the issue of multi-party computation (MPC) through an addendum to the explanatory memorandum, clarifying that the law applies to platforms that actually hold crypto for customers.
Custody Design
The distinction may prove crucial for custody design, because it narrows the licensing trigger to factual control of client assets rather than every supporting tool inside the digital asset stack.
Key Takeaways
- Australia has passed the Digital Assets Framework Bill 2025, regulating digital asset platforms
- Crypto operators will need to secure an Australian Financial Services Licence
- 12-month transition period for businesses to comply
- Clarification on MPC tools and custody design
Frequently Asked Questions
What is the purpose of the Digital Assets Framework Bill 2025?
The bill aims to regulate digital asset platforms and provide clarity on licensing requirements.
How will the new licensing framework affect crypto operators?
Crypto operators will need to secure an Australian Financial Services Licence and comply with the new regulations within the 12-month transition period.
