Australia is moving to close long-standing gaps in its digital asset regulation with a new bill designed to both foster innovation and shield consumers from future market failures.
The government confirmed it has submitted the Corporations Amendment (Digital Assets Framework) Bill 2025 to parliament, outlining a comprehensive set of rules for how crypto platforms operating in the country must manage and safeguard customer assets, claims CoinDesk.
According to the Ministry of Financial Services, the legislation is intended to put an end to years of regulatory uncertainty and prevent a repeat of major offshore collapses such as FTX and Celsius. Those failures triggered losses of billions of dollars and left thousands of Australians with little to no legal protection, highlighting the vulnerabilities in the country’s previous hands-off approach.
The bill lays out enforceable standards for any business holding digital assets on behalf of consumers. Under the proposals, all crypto and blockchain firms would be brought firmly within the existing financial regulatory framework, meaning they must comply with the same wider rules on transparency, operational integrity and consumer safeguards that apply across the financial services industry. A joint statement accompanying the announcement argued that “Australia could capture up to $24 billion a year in productivity and cost savings thanks to unlocking digital finance innovation”.
As part of the reforms, crypto platforms will need to secure an Australian Financial Services License. Their supervisory obligations will be tailored to reflect the distinct risks and operational structures of digital asset businesses, but the overall intent is to ensure customers benefit from similar protections to those seen elsewhere in regulated financial markets.
However, the government has made allowances for smaller participants. Platforms considered low-risk, holding less than $5,000 per customer and facilitating fewer than $10m in annual transactions, will be exempt from the requirements. This exemption mirrors the approach used for other financial products, including non-cash payment facilities, and is intended to ensure proportionality without stifling innovation among early-stage firms.
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