Australia Proposes Bank-Grade Regulatory Framework for Crypto Platforms

Australia is advancing toward stricter oversight of cryptocurrency platforms with a new regulatory proposal that aligns digital asset services with traditional financial standards. The government's exposure draft amends the Corporations Act to introduce licensing requirements akin to those governing banks and custodians.

Two new categories—"digital asset platforms" and "tokenized custody platforms"—will face mandatory Australian Financial Services Licence (AFSL) compliance. The rules emphasize operational transparency, consumer protection, and enforcement penalties, with public consultation closing on October 24.

The move signals Australia's intent to mitigate risks in crypto markets while fostering institutional confidence. By treating exchanges and custodians as financial service providers, the framework bridges the gap between decentralized and legacy finance systems.