Australia Pushes Ahead With Finance Bill to Bring Crypto Under Regulation
Australia is moving forward with a new finance bill that would make all BTC platforms follow the identical rules as other financial services in the country.
This week, the Corporations Amendment (Digital Assets Framework) Bill 2025 was in parliament. It has already passed its first reading in the House of Representatives and is now up for debate on its principal ideas.
The measure carries out promises made in earlier Treasury discussions. Its purpose is to bridge the regulatory gaps that permitted many services to operate without the identical consumer protection standards that apply to traditional banking.
The government has described the law as a method to make markets securer and more accessible without stifling innovation, as millions of Australians now use or invest in crypto.
AFSL licensing and ASIC oversight
The primary section of the regulation says that most crypto platforms and tokenized custody providers must have an Australian Financial Services Licence (AFSL) and be directly monitored by the .
This differs from the lighter regime many platforms used to follow, which largely relied on AUSTRAC registration and the implementation of anti-money laundering rules.
The proposal introduces two new types of regulated financial products: “digital asset platforms” and “tokenized custody platforms.” These platforms will have to follow the identical AFSL rules, governance standards, conduct requirements, and client asset protections as other financial service providers.
Violations could lead to hefty fines, and officials have particularly noted recent failures in offshore markets like and Celsius as instances of hazards they want to avoid.
Consumer Protection and Custody Requirements
A key part of the regulation is how customers’ digital assets are kept secure and stored. Platforms will need to keep client funds distinct, maintain clear custody and reconciliation processes, and meet transparency criteria designed to reduce the risk of loss from fraud, mismanagement, or bankruptcy.
The purpose of the amendments is to make sure that “comparable activities have comparable obligations.” This implies that crypto businesses that manage customer assets will have to follow standards more akin to those for traditional custodial and investment services.
The government says this alignment will assist people regain trust in the market later than recent difficultys and encourage institutions to remain involved for the long term.
Positioning Australia as a Regulated Crypto Hub
The bill provides exceptions for smaller platforms so that businesses that are just begining or are less risky don’t have to put in too much effort.
Suppose a business has less than A$5,000 in digital assets per customer and handles less than A$10 million in transactions per year. In that case, it may not need to have a full as long as crypto activity is only a minor part of its main business.
It is recommended that there be an 18-month transition period so that current operators have time to obtain licenses, restructure their business structures, and update their compliance systems.
This gradual approach is comparable to exclusions already applied in other sectors of financial system. It wants to protect customers while also fostering innovation.
