Australia Drafts Law to Tighten Oversight of Digital Asset Platforms

Australia has unveiled draft legislation aimed at regulating digital asset platforms, proposing a framework that extends existing financial services laws to cryptocurrency businesses. The move seeks to enhance consumer protections and provide regulatory clarity for the industry.

Assistant Treasurer Daniel Mulino announced the reforms at the Digital Economy Council of Australia’s Global Digital Asset Regulatory Summit. The bill, described as the cornerstone of the government’s digital asset roadmap, aligns Australia with international regulatory peers. "This is about legitimizing the good actors and shutting out the bad," Mulino said. "It is about giving businesses certainty and consumers confidence."

The draft introduces two new categories under the Corporations Act: digital asset platforms and tokenized custody platforms. Operators will be required to obtain an Australian financial services license, manage conflicts of interest, and meet minimum custody and settlement standards. The reforms address gaps in consumer safeguards exposed by recent sector failures, particularly concerning the pooling and holding of client assets.