Australia Forces Crypto Platforms Into Broker Rulebook With New Licensing Law

Australia has moved to close a long-standing regulatory gap in crypto markets, forcing exchanges and custody providers into the same framework used for traditional financial firms.

The new Corporations Amendment (Digital Assets Framework) Bill 2025 brings crypto operators under the Australian Financial Services Licence regime, placing them directly under the supervision of the Australian Securities and Investments Commission. The shift targets a core issue seen in past failures: platforms holding customer assets without the safeguards required in regulated finance.

Under the law, two categories are now formally defined. Digital Asset Platforms cover exchanges and trading venues that control or record client holdings. Tokenized Custody Platforms refer to services that hold underlying assets while issuing tokenized representations. Both are now treated as financial products under the Corporations Act 2001.

This changes how platforms operate at a structural level. Firms must meet capital requirements, maintain clear separation of client assets, and provide disclosures on how funds are held and used. Dispute resolution is no longer optional, with access to the Australian Financial Complaints Authority becoming mandatory.

The law also directly addresses practices that became common during the industry’s rapid expansion. Previously, many platforms operated with only anti-money laundering registration, holding large volumes of client funds without formal custody standards or solvency buffers. That model is no longer viable under the new regime.

ASIC has been granted broader authority to set detailed rules on governance and risk controls, alongside the ability to impose civil penalties for non-compliance. The approach shifts oversight from reactive enforcement to ongoing supervision.

Notably, the framework does not apply uniformly. Smaller operators handling limited client funds and transaction volumes are exempt from full licensing, allowing early-stage platforms to continue operating without the same compliance burden.

The transition period extends up to 18 months for existing businesses, but the direction is clear. Platforms that hold customer assets are now expected to operate with controls similar to brokers and custodians, rather than technology providers.

The reform places Australia closer to jurisdictions that have already tightened crypto oversight, while offering a defined licensing path that has been largely absent in markets like the United States.