Australia Introduces Licensing Requirements for Crypto Firms

The Australian government has taken a significant step in regulating the country's cryptocurrency market with the passage of the Corporations Amendment Digital Assets Framework Bill 2025. The new law requires all crypto exchanges and custody providers to obtain an Australian Financial Services Licence (AFSL), which will bring them under core financial laws.

The framework creates two regulated categories: digital asset platforms, which include exchanges that hold crypto assets for users, and tokenized custody platforms, which cover firms that hold real-world assets and issue digital tokens. To secure an AFSL, operators must demonstrate they can safeguard client assets, maintain adequate capital, and provide clear disclosures.

The new law also grants the Australian Securities and Investments Commission (ASIC) expanded powers over custody, governance, and risk management standards. Regulators can issue civil penalties when firms breach the rules, ensuring consistent oversight across digital asset services.