Australia has passed the Corporations Amendment (Digital Assets Framework) Bill 2025, its first comprehensive law requiring crypto exchanges and custody providers to obtain Australian Financial Services Licences. The bill cleared both houses of Parliament on April 1, 2026, two weeks after the Senate Economics Committee recommended it pass without amendments.
The law targets intermediaries that hold customer funds, not the underlying tokens or blockchains themselves. Existing operators have six months from royal assent to apply for a licence from ASIC or cease operations.
Two New Categories, One Licensing Regime
The legislation creates two regulated product types under the existing Corporations Act.
Digital Asset Platforms (DAPs) cover any facility where an operator possesses or holds digital tokens for clients. This captures centralized exchanges, custodial wallet providers, and brokers that hold tokens on behalf of users.
Tokenised Custody Platforms (TCPs) cover operators that hold underlying assets and issue a corresponding digital token on a one-to-one basis. Vaulted gold with matching tokens and tokenized real property both fall into this category.
Both types must obtain an AFSL and comply with the same core obligations that apply to brokers and fund managers: safeguarding client assets, providing standardized disclosures, avoiding misleading conduct, and maintaining dispute resolution and compensation systems. The intent is to close the gap that let large crypto holdings exist outside the financial services licensing perimeter.
Not everyone is captured. A low-value exemption applies to platforms holding less than AU$5,000 per customer and facilitating under AU$10 million annually. Non-custodial services, where providers never possess client tokens, are also excluded. Self-custody wallets and decentralized protocols that do not hold user funds fall outside the bill's scope.
The A$24 Billion Question
The government framed the legislation around a specific economic argument. Research estimates that tokenized markets, digital payments, and crypto services represent an annual opportunity of approximately A$24 billion for Australia, roughly 1% of GDP. Without a licensing framework, projections suggested Australia would capture only A$1 billion of that by 2030.
The gap between "potential" and "likely without action" drove the urgency. Treasury and ASIC positioned the bill as infrastructure for institutional participation, not just consumer protection. The logic: international funds and banks will not allocate through Australian venues that lack regulatory equivalence with markets in the EU (under MiCA), the UK, and Singapore.
Layered Compliance Is the Real Cost
The bill does not replace Australia's existing AML/CTF requirements. Crypto businesses already register with AUSTRAC as digital currency providers, and a new virtual asset services registration regime opened on March 31, 2026. AML/CTF obligations take effect July 1, 2026.
This means operators face layered compliance: an AFSL for platform operations, AUSTRAC registration for anti-money-laundering, and potentially product-specific requirements if the tokens they list qualify as securities, derivatives, or managed investment schemes under existing law. ASIC's INFO 225 guidance provides 18 worked examples of how different token structures map to current financial product definitions.
The six-month licensing window includes a deferral mechanism. Operators who apply on time can continue operating while ASIC processes their application, but only if they meet the filing deadline.
Who Reacted and What They Said
Kraken called the law a "top-down signal" of Australia's commitment to crypto. OKX Australia's CEO Kate Cooper described it as a moment for institutional participation to scale up. Coinbase had previously welcomed the bill during the Senate committee phase, while Ripple urged tweaks to the exemption thresholds.
The bill passed without amendments despite industry feedback requesting higher exemption ceilings and clearer stablecoin treatment. Stablecoins are addressed separately through payments licensing reforms, with key design settings still subject to consultation.
Where Australia Fits in the Global Licensing Race
Australia is not the first major economy to pass dedicated crypto licensing rules. The EU's MiCA framework took effect in December 2024. Singapore's Payment Services Act has covered crypto since 2020. Hong Kong's licensing regime for virtual asset trading platforms launched in mid-2023.
But Australia is the first to build its framework directly into existing corporate financial services law rather than creating a standalone crypto statute. The approach means ASIC does not need new enforcement powers. Existing Corporations Act penalties, including civil and criminal sanctions for operating without a licence, apply automatically.
For users of crypto cards available in Australia, the practical effect depends on custody model. Custodial card issuers that hold user funds in Australia will need an AFSL. Non-custodial card providers that let users spend directly from their own wallets are excluded from the licensing requirement.
Overview
Australia passed the Corporations Amendment (Digital Assets Framework) Bill 2025 on April 1, 2026, creating the country's first dedicated crypto licensing regime. Exchanges and custody providers have six months to obtain an Australian Financial Services Licence from ASIC. The law creates two regulated categories, DAPs and TCPs, targeting any entity that holds customer crypto. Small operators under AU$10 million annual volume and non-custodial services are exempt. The government estimates the regulated digital asset market at A$24 billion annually.
