Australia’s Treasury has unveiled draft legislation that would require crypto exchanges and certain service providers to obtain an Australian financial services license.
The consultation, launched Thursday, proposes amendments to the Corporations Act 2001 that would classify digital asset platforms (DAPs) and tokenized custody platforms (TCPs) as financial products. This change would bring them under the same licensing and consumer protection rules that apply to traditional financial services.
According to the Treasury’s fact sheet, the new framework focuses on businesses that hold assets for clients, not on the digital assets themselves. It noted that while crypto assets already fall within existing legal frameworks, past collapses of digital asset intermediaries have caused significant consumer losses, including in Australia.
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Under the proposal, DAPs, such as trading platforms and brokerages, and TCPs, which include tokenized physical asset custody platforms, would be regulated in the same way as comparable intermediaries like investment portfolio operators.
Australia Outlines New Licensing Framework for Crypto Businesses
Speaking at the Digital Economy Council of Australia’s regulatory summit on Wednesday, Assistant Treasurer Daniel Mulino said the draft legislation would create a new framework for crypto firms, according to Capital Brief. “It will do so by extending existing financial services laws but in a targeted way,” he noted.
If passed, the Australian Securities and Investments Commission (ASIC) would become the primary regulator responsible for issuing licenses. The consultation period on the draft rules will remain open until October 24, 2025.
Currently, crypto exchanges in Australia are only required to follow anti-money laundering (AML) and know-your-customer (KYC) obligations, the Australian Financial Review reported.
At the same time, ASIC has taken steps to ease certain requirements, granting a class exemption last week that allows licensed intermediaries to distribute stablecoins without needing separate regulatory approvals.
