Australia passed legislation on Wednesday, creating its first comprehensive regulatory framework for digital assets that requires crypto exchanges and custody providers to obtain financial services licenses.
The Corporations Amendment (Digital Assets Framework) Bill 2025 passed both houses on April 1, bringing companies that hold digital assets on behalf of clients into the existing Australian financial services licensing regime.
Australia’s bill creates two new categories regulated under the Corporations Act: digital asset platforms, which hold cryptocurrencies on behalf of users, and tokenized custody platforms, which hold real-world assets and issue a corresponding digital token.
Operators of both must obtain an Australian Financial Services License from ASIC, which subjects them to the same basic rules as brokers or fund managers, including requirements to safeguard client assets, provide standardized disclosures, avoid misleading conduct and maintain compensation and dispute resolution systems.
Rather than regulating cryptocurrencies themselves, the law targets intermediary companies that control customer funds, aiming to reduce risks such as asset commingling, insolvency and misuse that have caused losses in past crypto failures.
Research from the Digital Finance Cooperative Research Center and industry groups estimates that Australia could generate up to A$24 billion annually from tokenized markets, payments and digital assets, about 1% of GDP. Under the previous regulatory pathway, the country was on track to raise just A$1 billion of that amount by 2030.
A Kraken spokesperson said the law provides a “top-down signal” that Australia is serious about digital assets, adding that clearer rules would give companies confidence to invest and expand locally.
Kate Cooper, CEO of OKX Australia and co-chair of the Australian Digital Economy Council, called the bill a “watershed moment” and said it lays a foundation for institutional participation and long-term capital allocation.
