The Australian government has introduced the Corporations Amendment (Digital Assets Framework) Bill 2025, establishing a national regulatory system for businesses that hold or manage digital assets on behalf of consumers. Announced by Treasurer Jim Chalmers and Assistant Treasurer and Minister for Financial Services Dr Daniel Mulino, the bill brings crypto platforms into alignment with the consumer protection standards that apply across the broader financial system.
The legislation defines key terms such as digital tokens, digital asset platforms, and tokenised custody platforms, clarifying which businesses fall within the scope of regulation. Operators of these platforms must obtain an Australian Financial Services Licence (AFSL) and comply with specific requirements for custody, transaction settlement, and disclosure.
A joint statement from Chalmers and Mulino pointed to recent failures overseas.
“Currently, businesses can hold unlimited client digital assets without financial law safeguards. Recent collapses overseas have shown the consequences of inadequate oversight,” they said.
Mulino told Parliament that “Across the world, digital assets are reshaping finance. Australia must keep pace. If we get this right, we can attract investment, create jobs and position our financial system as a leader in innovation.”
How the new system will work
The bill introduces two new categories of financial products under the Corporations Act: digital asset platforms and tokenised custody platforms.
A digital asset platform covers facilities where operators hold clients’ crypto assets and provide functions such as transfers or trades. A tokenised custody platform covers real-world assets such as bonds, property, or commodities that are represented as redeemable digital tokens.
Platform operators must act “efficiently, honestly and fairly,” maintain strong governance and risk controls, and provide transparent information about risks, fees, and operational safeguards to retail customers. The framework also mandates accessible dispute resolution and compensation mechanisms.
Under the law, smaller operations will be exempt from licensing if they hold less than $5,000 per customer and process less than $10 million in transaction volume annually. This approach mirrors the treatment of low-value non-cash payment facilities.
Mulino noted that the exemptions ensure innovation is not restricted by heavy regulation. He said the measure gives “relief for businesses trying to do the right thing.”
Industry reaction and remaining questions
Industry leaders have described the bill as a major step toward regulatory clarity. Crypto.com said the bill gives the Minister and ASIC practical powers to classify or exempt platforms if necessary.
“There are also tailored exemptions for smaller platforms and certain blockchain activities, aiming to balance innovation with regulatory certainty,” said Vakul Talwar, general manager for Australia at Crypto.com.
Lucia Uen, general manager of custody at CloudTech, said while the legislation addresses key gaps, uncertainties still exist.
“Particularly in relation to overlapping licensing obligations and the regulatory standards that ASIC will prescribe for digital asset platforms and tokenised custody,” she said.
Uen added that the government’s approach corrects inconsistencies identified during the earlier consultation process.
“The bill appropriately incorporates several amendments designed to address concerns and rectify drafting inconsistencies identified by industry stakeholders during the consultation process.”
Talwar described the framework as practical and less restrictive than earlier regulatory proposals. He said that requiring crypto exchanges to hold a full market operating licence “would have stifled the growth of the crypto economy by increasing unnecessary red tape.”
The Digital Economy Council of Australia (DECA) CEO Amy-Rose Goodey called the Digital Asset Platform Bill the most significant regulatory advancement yet for the industry.
“It establishes a formal licensing framework for digital asset platforms and custody, which the industry has been calling for consistently,” she said.
Goodey cautioned that the measure’s success will depend on coordination among government agencies.
“Its success will depend on how well it aligns with ASIC, AUSTRAC, and the ATO for example. Coordination across agencies will determine whether Australia becomes a serious global player or remains a fast follower.”
A step toward a regulated digital finance future
The government said millions of Australians now use or invest in digital assets.
“We take Australia’s crypto industry seriously and we know that blockchain and digital assets present big opportunities for our economy, our financial sector, and our businesses,” the statement said.
Research from the Digital Finance Cooperative Research Centre estimates digital finance innovation could unlock $24 billion in productivity and cost savings each year.
Industry observers, including academics and legal specialists, recognise this bill as a crucial foundation for responsible growth. The regime includes an 18-month transition period, allowing companies to obtain licences and adjust operations before full enforcement begins.
If passed, the Corporations Amendment (Digital Assets Framework) Bill 2025 will bring Australia in line with other major jurisdictions that have established clear oversight for crypto and digital asset platforms.
Roman Zaika
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