Australia’s long-awaited legal framework for digital assets has officially come into force after gaining parliamentary approval. The legislation, which received the green light on Wednesday, makes it mandatory for cryptocurrency exchanges and custody service providers to obtain a financial services license, marking a major milestone for the country’s regulatory environment.
Scope of the new regulation and key innovations
The new Corporations Amendment (Digital Assets Framework) Bill 2025 brings companies holding crypto assets on behalf of customers under the umbrella of the Australian Financial Services Licensing scheme. With this step, firms that safeguard clients’ cryptocurrencies and related tokens will now be directly supervised by regulatory authorities, significantly tightening oversight over digital asset service providers.
Two new legal categories have been introduced under the law: digital asset platforms, which hold users’ cryptocurrencies in trust, and tokenized custody platforms, which secure real-world assets that have been digitized as tokens. This dual structure aims to clarify roles and responsibilities within Australia’s fast-evolving digital finance sector.
Importantly, the legislation centers not on cryptocurrencies themselves, but on the intermediary firms managing customer funds. Regulators highlight that risks such as commingling of assets, insolvency, and misuse of funds among these companies have led to significant losses in the past, underscoring the need for robust regulatory safeguards.
Sector response and economic outlook
Research by the Digital Finance Cooperative Research Centre and industry stakeholders predicts that tokenized markets and digital assets could contribute around 24 billion Australian dollars annually to the national economy—roughly 1% of GDP. In contrast, under the former regulatory regime, industry projections had capped growth at just 1 billion dollars by 2030, indicating the scope of expansion opened by the new framework.
Representatives from cryptocurrency exchange Kraken have pointed to the legislation as evidence of Australia’s strong resolve in embracing digital assets. The company emphasized that regulatory clarity would encourage businesses to invest and expand within the local market, creating a more attractive business climate for both established and emerging players.
The law sends a clear signal that Australia is serious about digital assets. A more predictable regulatory landscape can help foster greater local investment, company officials noted.
Kate Cooper, CEO of OKX Australia and co-chair of the Digital Economy Council of Australia, also described the new rules as ushering in a new era for the sector.
The legislation lays a solid foundation for institutional participation and long-term capital allocation within the industry, Cooper stated.
OKX Australia, led by Cooper, is an internationally active crypto exchange with ambitions to expand across the Australian market. The Digital Economy Council of Australia brings together sector leaders and plays a pivotal role in establishing standards for the nation’s digital finance ecosystem, with an eye toward increased innovation and consumer protection.
With these changes, Australia is widely expected to provide a safer and more effective global environment for digital assets and tokenized finance, further strengthening the country’s position as a regional leader in fintech regulation.
