In a significant move to strengthen oversight of the crypto sector, the Australian government has approved new legislation aimed at regulating digital asset platforms and custody services.
The bill, titled Corporations Amendment (Digital Assets Framework) Bill 2025, has cleared both houses of Parliament. It brings digital asset service providers operating in Australia under the country’s financial services licensing regime, with a focus on improving clarity, transparency, and investor protection.
The new rules target cryptocurrency platforms by introducing strict Know Your Customer (KYC) requirements and anti-money laundering measures. The legislation is currently awaiting royal assent, the final step before it becomes law. Once approved, it will take 12 months to come into effect, followed by an additional transition period for businesses to comply.
Under the framework, digital asset providers, including exchanges and custody platforms, must obtain an Australian Financial Services Licence (AFSL) from the Australian Securities and Investments Commission (ASIC), the country’s financial regulator.
Industry stakeholders have welcomed the development. The Digital Economy Council of Australia stated on LinkedIn, “For the first time, we have a legislative framework that directly addresses digital asset platforms, and it provides long-awaited clarity for businesses, investors, and regulators, and marks a shift from uncertainty toward implementation.” Jazz Ozvald, former assistant director of digital asset policy at the Commonwealth Treasury, also expressed support for the milestone.
The bill builds on earlier efforts by lawmakers to bring crypto platforms under financial regulations, including proposals outlining licensing requirements for exchanges and custody providers. The objective has been to align crypto firms with traditional financial rules while reducing risks linked to market volatility and enhancing investor protection.
With this step, Australia is tightening regulatory scrutiny of digital assets. The new framework is expected to boost trust and regulatory certainty in the sector, even as it may increase compliance costs for businesses. Over time, it is likely to shape how cryptocurrency firms operate within the country’s financial system and support long-term market stability.
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