The Australian government introduced the Corporations Amendment (Digital Assets Framework) Bill 2025, requiring crypto platforms and tokenised custody providers to hold an Australian Financial Services Licence (AFSL) under ASIC supervision. Introduced on 26 November 2025, the initiative includes an 18-month transitional period and seeks to close gaps that allowed unlimited holding of customer assets while establishing protections equivalent to those of the traditional financial sector.
Regulatory framework for crypto platforms
The bill creates two formal categories —“digital asset platforms” and “tokenised custody platforms”— and conditions their operation on holding an AFSL, with ASIC as the principal regulator. An AFSL is the authorization that allows an entity to provide regulated financial services and subjects it to conduct and reporting obligations.
Requirements include providing services efficiently, honestly and fairly; prohibitions on misleading conduct; diligent management of conflicts of interest; and an obligation to report transparently on customer holdings and rights. The text incorporates practical operational requirements, including minimum standards for transactions and settlements, strengthened custody of client assets, internal dispute-resolution mechanisms and service guides that detail fees and risks.
Interoperability with external resolution mechanisms is foreseen, in particular the jurisdiction of the Australian Financial Complaints Authority (AFCA). A brief, relevant quote: Shail Singh, Lead Ombudsman for Investments and Advice at AFCA, noted that adapting ASIC’s guidance “means that consumer protections extend to investors in cryptocurrencies and digital assets.”
Exemptions, timelines and sanctions
The framework includes exemption thresholds for low-risk operators: platforms that hold less than $5,000 per customer or process less than $10 million in annual volume are exempt from the full licensing requirement, aiming to minimize the regulatory burden on small actors.
The 18-month adjustment period is intended to give companies operational time to obtain licences and adjust processes, while severe sanctions for non-compliance emphasize strict enforcement. Operational and comparative impact: the rule corrects the absence of requirements equivalent to those of traditional financial services, which allowed practices such as non-segregated custody and opacity in reserves.
For custodians and exchanges it implies investment in compliance, audits and technology for segregated custody; for consumers, greater traceability and effective complaint channels.
Conclusion: The initiative represents a transition of the crypto sector toward a regulatory regime aligned with conventional financial standards, with immediate consequences in compliance obligations and asset management by platforms. The next milestone is the bill’s progress in the House of Representatives and its eventual consideration in the Senate; in parallel, affected entities have 18 months to adapt to the new requirements.
