The Corporations Amendment (Digital Assets Framework) Bill 2025 establishes clearer, enforceable rules for businesses holding digital assets on behalf of consumers, aligning them with the transparency, integrity and consumer-protection standards that govern the broader financial system.
Central to the Bill is a detailed definition of key concepts such as ‘digital tokens’, ‘digital asset platforms’ and ‘tokenised custody platforms’, providing clarity on the activities captured within the regulatory perimeter.
Operators of these platforms will be subject to licensing obligations, minimum standards and ASIC oversight. This includes new requirements for custody, transaction settlement and disclosure, with platforms required to give retail clients accessible information on risks, fees and operational safeguards.
Emphasising the need for this regulation, a joint statement from treasurer Jim Chalmers and assistant treasurer and minister for financial services, Dr Daniel Mulino, noted: “Currently, businesses can hold unlimited client digital assets without financial law safeguards. Recent collapses overseas have shown the consequences of inadequate oversight.”
In response, Crypto.com said the Bill grants the Minister and ASIC broad powers to intervene in the market, including the ability to declare certain platforms financial markets or exempt them where appropriate.
“There are also tailored exemptions for smaller platforms and certain blockchain activities, aiming to balance innovation with regulatory certainty,” general manager for Australia, Vakul Talwar said.
While the government says the legislation closes critical gaps, CloudTech’s general manager, custody, Lucia Uen, warned that important uncertainties remain.
“Particularly in relation to overlapping licensing obligations and the regulatory standards that ASIC will prescribe for digital asset platforms and tokenised custody,” she said.
The government emphasised that millions of Australians now use or invest in digital assets.
“We take Australia’s crypto industry seriously and we know that blockchain and digital assets present big opportunities for our economy, our financial sector and our businesses,” the statement said.
“Digital assets are reshaping global finance and include cryptocurrencies such as Bitcoin and stablecoins, as well as real world assets – like bonds, property and commodities – represented as digital tokens.”
Research from the Digital Finance Cooperative Research Centre suggests Australia could unlock up to $24 billion annually in productivity and cost efficiencies through digital finance innovation.
Under the new Bill, AFSL holders must act efficiently, honestly and fairly; avoid misleading conduct and unfair terms; clearly explain how assets are held and what rights clients have; maintain strong governance and risk controls; and provide accessible dispute-resolution and compensation mechanisms.
Although digital asset platforms and tokenised custody platforms will sit within the existing AFSL regime, their obligations will be customised to reflect their distinct operational models and risk profiles.
Smaller, low-risk platforms holding less than $5,000 per customer and facilitating less than $10 million in annual transactions will be exempt, mirroring existing treatment of low-value non-cash payment facilities.
“Currently, businesses can hold unlimited client digital assets without financial law safeguards. Recent collapses overseas have shown the consequences of inadequate oversight,” the government said.
CloudTech’s Uen welcomed the swift introduction of the legislation, saying it represents a major step toward establishing regulatory clarity for digital assets and blockchain-enabled services.
“The bill appropriately incorporates several amendments designed to address concerns and rectify drafting inconsistencies identified by industry stakeholders during the consultation process,” Uen said.
Talwar, described the Bill as a pragmatic advancement for the sector that was less restrictive than earlier proposals. For industry participants, the regime includes a 12-month lead-in period followed by a six-month transition phase to ensure compliance and operational readiness.
“This is a more appropriate measure than what was previously proposed by ASIC, where they sought market operators like crypto exchanges to instead hold a market operating licence, a policy that would have stifled the growth of the crypto economy by increasing unnecessary red tape.”
“Both Crypto.com and the broader industry have maintained consistent pressure on the Federal Government to introduce fit-for-purpose regulation by the end of 2025.”
DECA CEO Amy-Rose Goodey believes the Digital Asset Platform Bill is the most important step Australia has taken on digital asset regulation to date.
“It establishes a formal licensing framework for digital asset platforms and custody, which the industry has been calling for consistently.”
