Australia Imposes Licensing Regime on Crypto Platforms in $24B Regulatory Overhaul

Australia has enacted its first comprehensive digital-asset framework, requiring centralized exchanges and custody providers to obtain financial services licenses under existing laws. The Corporations Amendment (Digital Assets Framework) Bill 2025 brings crypto platforms under ASIC's oversight, mandating compliance with custody, disclosure, and risk management standards.

The legislation targets intermediaries rather than individual crypto assets, aiming to prevent fund mismanagement and bankruptcies that have plagued the industry. Two new regulatory categories emerge: Digital Asset Platforms (DAPs) and tokenized custody platforms (TCPs), both subject to traditional financial services rules.

Businesses have 18 months to comply, with exemptions only for small-scale operators. The move signals Australia's push to legitimize crypto while curbing risks—a tightrope walk between fostering institutional adoption and potentially stifling smaller players.