Australia Unveils Comprehensive Crypto Regulation Bill

Australia is taking a significant step towards regulating the cryptocurrency industry with the introduction of the Corporations Amendment (Digital Assets Framework) Bill 2025. This new legislation seeks to establish a comprehensive regulatory framework for businesses holding digital assets on behalf of customers. The government anticipates that these regulations could unlock substantial productivity gains, estimated at $24 billion annually, while also safeguarding consumer interests through stringent penalties for non-compliance.

Key Features of the Bill

The bill introduces two new financial product categories:

• Digital asset platforms: These encompass facilities that hold clients' crypto assets and provide transactional functions like transfers, buying, selling, and staking.
• Tokenized custody platforms: These handle real-world assets such as bonds, property, and commodities, where licensed operators must hold the underlying asset and issue a single redeemable token.

Platforms will be required to hold an Australian Financial Services Licence and adhere to ASIC's custody and settlement standards. However, exemptions are provided for low-risk operators under certain thresholds.

Industry Reaction

While generally welcomed, some industry participants have expressed concerns regarding the practical implementation and potential costs of compliance. Questions remain about how discretionary powers will be used and whether the definitional detail is sufficient.

Key Takeaways

• Australia is introducing a comprehensive regulatory framework for crypto assets.
• The bill aims to protect consumers and foster innovation in the digital asset space.
• Industry participants have raised concerns about practical implementation and costs.

It remains to be seen how this new regulatory landscape will impact the Australian crypto industry and its competitiveness on the global stage.