Australia has taken a decisive step toward regulating the fast-growing digital asset sector, passing its first comprehensive crypto framework aimed at tightening oversight and boosting investor confidence.
The newly approved Corporations Amendment (Digital Assets Framework) Bill 2025 cleared both houses on April 1, introducing mandatory licensing requirements for crypto exchanges and custody providers operating in the country. The law marks a shift from loosely defined oversight to a structured regulatory regime aligned with traditional financial services.
New Rules target crypto intermediaries, not assets
Rather than regulating cryptocurrencies directly, the legislation focuses on the companies that manage and hold digital assets on behalf of users. This includes exchanges and custodians, entities that have historically been at the centre of major industry failures.
Under the law, two new categories are created: digital asset platforms and tokenized custody platforms. While the former refers to businesses that store and hold the crypto assets of people, the latter refers to businesses that deal with real-world assets and create digital tokens representing the same.
These platforms are now required to get an Australian Financial Services Licence (AFSL) from ASIC. This puts these businesses at par with brokers and fund managers who are required to protect client funds, make proper disclosures, avoid misleading actions, and establish a system of dispute resolution.
This is a big step towards addressing the long-persisting risks in the crypto space, which include the commingling of client assets, insolvency risk, and the misuse of assets, which have caused losses of billions of dollars worldwide.
A $24 Billion opportunity for Australia’s digital economy
Another significant aspect of the legislation is the intent of the government to position Australia as a global hub for digital finance. According to the Digital Finance Cooperative Research Centre, Australia has the potential to gain up to $24 billion annually from digital assets, tokenization, and payments, which is equivalent to 1% of GDP.
Without regulatory clarity, projections indicated Australia might have captured only A$1 billion of that opportunity by 2030.
Industry players have welcomed the development. A spokesperson from Kraken described the law as a strong signal of commitment to the sector, noting it would encourage investment and expansion. Meanwhile, OKX Australia CEO Kate Cooper called it a “pivotal moment” that lays the groundwork for institutional participation and long-term capital inflows.
Enjoyed this piece? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads and CoinMarketCap Community for seamless access to high-quality industry insights.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
