Australia Mandates Crypto Licenses to Boost Market Transparency

Australia is tightening its regulatory grip on the cryptocurrency sector with a draft law that requires exchanges and certain service providers to obtain financial services licenses. The proposal, open for public consultation until October 2025, aims to bring crypto platforms under the same legal framework as traditional financial intermediaries.

The Treasury's MOVE classifies Cryptocurrency Platforms (DAPs) and Tokenized Custody Platforms (TCPs) as financial products, amending the Corporations Act of 2001. The focus is on businesses holding assets for customers, not the cryptocurrencies themselves. Recent failures of intermediary firms have spurred this push for greater investor protection.

Regulators are zeroing in on custody and trading infrastructure, signaling a shift toward institutional-grade oversight. The Australian Securities and Investments Commission will enforce these rules, marking a pivotal step in legitimizing crypto markets.