Australia includes crypto platforms in financial services regulation through new consumer protection legislation

On Wednesday, Australian Treasurer Jim Chalmers and Minister for Financial Services Daniel Mulino submitted the 2025 Company Amendment (Digital Assets Framework) Bill to Parliament, aimed at addressing regulatory gaps and enhancing the protection of billions in customer assets.

The bill brings cryptocurrency exchanges and custodial service providers under the regulatory scope of financial services laws, designating the Australian Securities and Investments Commission (ASIC) as the primary regulatory body. The new framework introduces two new categories of financial products: digital asset platforms and tokenized custodial platforms, requiring operators to hold an "Australian Financial Services License." These platforms must operate "efficiently, honestly, and fairly," and comply with ASIC's standards for asset safety, trade execution, and the handling and settlement of customer instructions.

The bill includes exemption clauses: low-risk platforms holding assets of less than $5,000 per customer and with annual transaction volumes below $10,000,000 may be exempt from full licensing requirements. The government stated that this move is expected to unlock $24 billion in productivity growth annually, while imposing millions of dollars in fines on companies that fail to protect customer assets.