Australia Moves to Regulate Crypto Under Financial Services Framework

Australia's treasury has unveiled draft legislation that would bring cryptocurrency firms under the country's existing financial services regulations. The proposal mandates licensing for digital asset platforms, placing them under the oversight of the Australian Securities and Investments Commission (ASIC).

Digital asset platforms and tokenized custody services will be treated as financial intermediaries, subject to the same licensing requirements and consumer protection rules as traditional financial institutions. Assistant Treasurer Daniel Mulino emphasized the targeted extension of current financial laws to accommodate crypto businesses.

The consultation period for the draft legislation remains open until October 2025, marking a significant step toward formalizing crypto's role in Australia's financial ecosystem.