Australia Enacts Cryptocurrency Exchange Licensing Law

Australia approves first comprehensive digital assets act, requiring licenses for crypto exchanges.

Australia has approved the country’s first comprehensive act for the digital assets market. Cryptocurrency exchanges and custodial services are now required to obtain financial services licenses.

On April 1, the Corporations Amendment (Digital Assets Framework) Bill 2025 passed both houses of parliament. Cryptocurrency-focused platforms will be subject to the same standards as brokers and fund managers.

The document introduces two new regulated classes under the Corporations Act:

1. Digital asset platforms — exchanges and similar services that hold digital assets on behalf of users.
2. Tokenized storage platforms — firms that issue and hold virtual tokens backed by real assets.

Operators in both categories must obtain an AFSL license from the Australian Securities and Investments Commission (ASIC). It imposes requirements for client funds protection, capital adequacy, transparency in reporting, and participation in dispute resolution mechanisms.

Previously, cryptocurrency exchanges in Australia only needed to register with anti-money laundering authorities if their products were not considered financial instruments. Under the new regulations, trading platforms will have to meet stricter standards.

ASIC will gain expanded powers to set rules for asset custody, management, and risk management, with civil penalties for violations. Small platforms are exempt from some requirements.

Full licensing will not be required for firms with client funds under 5000 AUD and annual turnover below 10 million AUD.

The bill is currently awaiting royal assent — the final stage. It will come into force 12 months after approval, with an additional transition period for businesses.

Former Deputy Director of Digital Assets Policy at the Commonwealth Treasury, Jazz Osvald, welcomed the adoption of the document.

He noted that the government also added clarifications in the explanatory note on how the law should apply in cases where control over digital tokens is exercised through multi-party computations.

Earlier in 2025, the plan for developing cryptocurrency legislation in Australia emerged, aiming to create a regulated ecosystem that combines innovation with consumer protection.