Australia passed a law on Wednesday, creating its first comprehensive regulatory framework for digital assets that requires crypto exchanges and custody providers to obtain financial services licenses.
The Companies Amendment (Digital Assets Framework) Bill 2025 was approved by both Houses on April 1, integrating businesses that hold digital assets on behalf of their clients into Australia’s existing financial services licensing regime.
The Australian bill creates two new regulated categories under the Corporations Act: digital asset platforms, which hold cryptocurrencies on behalf of users, and tokenized custody platforms, which hold real-world assets and issue a corresponding digital token.
Operators of both must obtain an Australian financial services license from ASIC, subjecting them to the same basic rules as brokers or fund managers, including requirements to protect customer assets, provide standardized information, avoid misleading conduct and maintain dispute resolution and compensation systems.
Instead of regulating crypto itself, the law targets intermediary companies that control customer funds, aiming to reduce risks such as commingling, insolvency and asset misuse that have caused losses in past crypto failures.
Research by the Digital Finance Cooperative Research Center and industry groups estimates that Australia could generate up to A$24 billion a year from tokenized markets, payments and digital assets, or around 1% of GDP. Under previous regulations, the country was on track to capture just A$1 billion by 2030.
A Kraken spokesperson said the law provides a “top-down signal” that Australia is serious about digital assets, adding that clearer rules would give businesses the confidence to invest and grow locally.
Kate Cooper, CEO of OKX Australia and co-chair of the Digital Economy Council of Australia, called the bill a “pivotal moment”, saying it sets a foundation for institutional participation and long-term capital allocation.
