Australia’s $24B Crypto Bill Promises Growth — But Custody Rules Get Tough
Australia is moving fast to regulate its digital asset sector with the Corporations Amendment (Digital Assets Framework) Bill 2025...
Quick overview
- Australia is introducing the Corporations Amendment (Digital Assets Framework) Bill 2025 to regulate its digital asset sector and enhance investor security.
- The legislation aims to unlock $24 billion in annual productivity gains and establishes a licensing regime for crypto exchanges and custodians under ASIC supervision.
- Smaller firms with less than A$10 million in annual crypto transactions are largely exempt from the new rules, allowing for a gradual implementation.
- The bill reflects Australia's commitment to balancing investor protection with industry growth in the digital finance space.
Australia is moving fast to regulate its digital asset sector with the Corporations Amendment (Digital Assets Framework) Bill 2025, the country’s first all-encompassing framework for companies dealing with customers’ crypto holdings. That’s the vision of Treasury boss Jim Chalmers and Financial Services Minister Daniel Mulino, who introduced the legislation.
The government reckons the reforms could unlock as much as $24 billion a year in productivity gains and, at the same time, offer a bit more security for average investors. The bill has just passed its first reading in parliament and is now headed to a second reading, where the real debate will start.
Mulino made the point that the reforms are about firms dealing with customers’ assets, not the blockchain tech itself – there was a significant gap here where firms could hold trillions in crypto with no oversight at all.
Licensing Overhaul and Compliance Rules
This legislation is introducing a proper licensing regime for the digital asset sector. Crypto exchanges and custodians must hold an Australian Financial Services License (AFSL) and be under ASIC supervision. There are two licenses on offer – one for digital asset platforms and one for tokenized custody platforms – because these roles are so different when it comes to storing and transferring digital assets.
🚨HUGE MOVE!!!
Australia have put forward the Companies Act Amendment (Digital Assets Framework) Bill 2025
Establishing the country’s first comprehensive rules for businesses holding digital assets on behalf of customers.
Big step toward clarity for the sector!! pic.twitter.com/pdrGjdnymh
— Kyle Chassé / DD🐸 (@Kylechasse) November 27, 2025
Some of the rules that’ll have to be followed include:
- Working to ASIC standards for transactions and settlements
- Being super clear about fees, risks, and asset management practices
- Playing by the rules when it comes to custody to stop any mismanagement from happening
But smaller outfits that don’t handle more than A$10 million a year or do only incidental crypto work are largely exempt. This lets the framework grow at a pace that matches the risk involved.
Transition Timeline and Enforcement
There’s an 18-month window before the new licensing rules kick in, giving compliant firms time to get sorted out under them. The analysts reckon it’ll sail through the House because of the PM’s Labor majority, but it may need crossbench support in the Senate.
The bill ties in with the efforts to lock down the crypto ecosystem:
- Since July 2023, ASIC has shut down over 14,000 scam and phishing sites – which is a staggering number – and about a fifth of those were crypto scams.
- There’s another bill on the way that’ll crack down on crypto ATMs and stop them from being used for money laundering and other shady stuff.
The new law puts the spotlight on Australia’s aim to balance investor protection with industry growth. It shows that the country is serious about becoming a safe and exciting place to do business in digital finance.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save