Australia Implements Mandatory Licensing for Crypto Platforms

Australia has taken a significant step in regulating its crypto market with the passage of a new law requiring mandatory licensing for cryptocurrency platforms.

The Corporations Amendment (Digital Assets Framework) Bill 2025 has come into force, bringing companies that hold crypto assets on behalf of customers under the Australian Financial Services Licensing scheme. This move aims to tighten oversight over digital asset service providers and reduce risks such as commingling of assets, insolvency, and misuse of funds.

The law introduces two new legal categories: digital asset platforms and tokenized custody platforms. Digital asset platforms hold users' cryptocurrencies in trust, while tokenized custody platforms secure real-world assets that have been digitized as tokens.

Industry projections indicate that the new framework could contribute around 24 billion Australian dollars annually to the national economy, up from previous estimates of just 1 billion dollars by 2030. The legislation is seen as a positive development for the sector, with representatives from cryptocurrency exchange Kraken highlighting the importance of regulatory clarity in encouraging businesses to invest and expand within the local market.