Australia introduces a new consumer protection law for crypto platforms, integrating digital asset services into the financial services regime and requiring most platforms to obtain an Australian Financial Services Licence (AFSL). The initiative prioritizes end-user protection and asset traceability under the supervision of the Australian Securities and Investments Commission (ASIC) and AUSTRAC. The reform centers on licensing, oversight and compliance to align crypto operations with established financial standards.
Technical detail and scope of the reform for crypto platforms
The Corporations Amendment (Digital Assets Framework) Bill 2025, introduced on 26 November 2025, creates two regulated categories: digital asset platforms and tokenized custody platforms. Digital asset platforms are facilities where the operator custody clients’ crypto-assets and facilitates transfers, buying and selling or staking; tokenized custody platforms are operators that hold the underlying physical asset and issue a single token redeemable for that asset.
AFSL is the authorization required to provide regulated financial services in Australia, and most platforms will need to obtain it to operate under the new framework. The Travel Rule requires the transmission of sender and recipient information in transfers between entities, aligning crypto asset movements with financial integrity standards.
ASIC will be the primary regulator for licensed entities, with supervisory powers over transactions, settlements, custody and governance controls. AUSTRAC expands its AML/CTF requirements and will introduce enhanced due diligence measures and enforcement of the Travel Rule, strengthening asset traceability and crime prevention.
The text contemplates specific exemptions: operators with annual volume below A$10.000.000 or client balances below A$5.000 are excluded from the immediate licensing requirement, narrowing the regulatory scope for small providers.
Operational impact, obligations and timelines for crypto platforms
The imposed obligations include fund segregation, solvency testing and user transparency, alongside minimum standards for transactions and dispute resolution. The framework requires governance controls, operational resilience and external audit, and introduces significant sanctions for non-compliance to ensure robust operational discipline.
The government estimates productivity benefits of up to A$24.000.000.000 per year associated with the tokenization of real assets under supervision. Operationally, platforms will need to invest in legal and technological infrastructure to comply with the licence, and the process of obtaining an AFSL can be lengthy and costly, shaping strategic planning and resource allocation.
The regime incorporates an 18-month transition period for actors to adapt their models, which will drive restructurings, possible market consolidations and a reduction of non-scalable operators. This phased approach sets expectations for compliance roadmaps and risk management upgrades across the sector.
The initiative represents a structural shift: it moves crypto platforms into the traditional regulatory framework with a focus on consumer protection and prevention of financial crime, balancing control and room for innovation limited by thresholds. The next formal milestone will be the parliamentary process and the gradual application of AUSTRAC oversight scheduled for 1 July 2026; during the 18-month period firms must prepare to obtain the licence and adapt their controls.