Australia Passes Digital Assets Regulation Bill

Australia's Parliament on Wednesday passed landmark legislation establishing the country's first comprehensive regulatory framework for digital assets, requiring cryptocurrency exchanges and custody providers to obtain financial services licenses.

The Corporations Amendment Digital Assets Framework Bill 2025 cleared both houses on April 1, amending the Corporations Act and the Australian Securities and Investments Commission Act. Introduced by the Treasury in November 2025, the bill targets digital asset platforms that hold cryptocurrencies on behalf of users and tokenized custody platforms that manage real-world assets while issuing corresponding digital tokens. Operators of these platforms must secure an Australian Financial Services Licence from the Australian Securities and Investments Commission, subjecting them to standards similar to those for brokers and fund managers. These include safeguarding client assets, providing clear disclosures on asset storage, implementing risk management, avoiding misleading conduct, and maintaining dispute resolution and compensation mechanisms.

The law focuses on intermediaries controlling customer funds rather than regulating digital...