Australia launches its first comprehensive oversight system for crypto services

Key points:

• Australia has passed a law that tightens control over crypto exchanges and services that store users’ digital assets.
• Companies are now required to obtain an AFSL license and operate under ASIC supervision
• The reform aims to improve customer safety and create transparent regulation in the digital asset space.

Australia has tightened control over crypto exchanges and companies that store users’ digital assets. The country has passed a new law that introduces stricter oversight and larger fines for those who fail to provide reliable protection for customer funds.

According to the government, these reforms will help boost the economy’s efficiency — potentially by up to $24 billion a year — while providing more safeguards for people who entrust their digital assets to private services.

Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino introduced amendments to the Corporations Amendment Bill called the Digital Assets Framework 2025. The document creates the first comprehensive regulatory system for companies that manage their customers’ cryptocurrencies.

Source: X.com

The bill passed its first reading in parliament and was immediately sent for a second reading, where deputies began discussing its key provisions. In a joint statement, the ministers emphasized that the government takes the crypto industry seriously, as blockchain and digital assets open up “big opportunities for our economy, our financial sector, and our businesses.”

The draft law came after consultations initiated by the Ministry of Finance in September. According to Mulino, this is one of the key steps in implementing the government’s digital asset strategy.

Key provisions

The main change in the bill concerns licensing. Crypto exchanges and custodial companies will now be required to obtain an Australian Financial Services License (AFSL), which will place them under the control of the Australian Securities and Investments Commission (ASIC). Two new license categories are also being introduced into the system: “digital asset platform” and “tokenized custody platform.” They take into account different business models of companies that store or transfer customer funds.

In October, ASIC required companies working with cryptocurrencies to obtain financial services licenses by June 30, 2026.