Australia Establishes Digital Asset Framework to Safeguard Investors

Australia has introduced its first comprehensive regulatory framework for digital assets, mandating crypto exchanges and custodians to obtain an Australian Financial Services Licence (AFSL). The Corporations Amendment (Digital Assets Framework) Bill 2025 targets platforms holding client assets, ensuring oversight as tokenization and new services evolve. Small operators receive exemptions, while firms have 18 months to comply—breaches incur civil penalties.

Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino championed the bill as a necessary step to protect consumers and clarify market rules. "Digital assets are reshaping finance globally," Mulino stated. "Australia must adapt to attract investment, create jobs, and lead in financial innovation."

The regulations address risks posed by unsecured custody of client crypto, a vulnerability highlighted by collapses like FTX. By focusing on asset-holding platforms rather than underlying blockchain tech, the framework aims to remain adaptable to emerging tokenized assets and services.