Australia Introduces Regulations for Crypto Exchanges and Custody Platforms

Australia's parliament has cleared legislation that requires cryptocurrency exchanges and custody platforms to obtain government-issued financial services licenses. This move marks a significant shift in how Australian regulators approach digital assets as a category of financial product.

The bill, titled the 'Corporations Amendment (Digital Assets Framework) Bill 2025', introduces new regulations for entities classified as 'digital asset platforms' and 'tokenized custody platforms'. These platforms must now act efficiently, honestly, and fairly, disclose clear information on customer asset storage, and maintain adequate governance and risk management controls.

The legislation does not define 'digital assets', but instead falls under the existing general legal frameworks for property, consumer, insolvency, criminal, family, and tax law. A 12-month transition period has been built in for businesses to come into compliance with the new regulations.