Key Highlights
- Australia pushes to regulate crypto platforms, requiring licences and stronger consumer protections.
- New rules make crypto firms follow bank-like safeguards, closing gaps in digital-asset oversight.
- AUSTRAC and ASIC target scams and risky advice, protecting both young and older investors.
Australia is moving to bring cryptocurrency platforms and custodians under stronger regulation. The Senate Economics Legislation Committee has backed the proposed Corporations Amendment (Digital Assets Framework) Bill 2025.
The legislation aims to fold crypto businesses into the country’s existing financial system, focusing on companies that hold or manage digital tokens for clients. Lawmakers hope this will close gaps in oversight and better protect users.
The bill, introduced by Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino, would require digital-asset platforms and tokenized custody services to hold an Australian Financial Services Licence.
Besides needing a licence, these companies would have to follow strict rules to keep customers’ assets safe and clearly share important information when signing up retail users. This means businesses handling people’s digital money would have to follow the same rules as banks and other traditional financial institutions.
Licensing and consumer protections explained
Under the new rules, companies that don’t yet have a licence would get six months to meet the requirements. The law also clearly explains key terms like “digital tokens,” “digital asset platforms,” and “tokenized custody platforms.” By defining these, lawmakers make sure crypto businesses follow existing financial laws, without trying to directly control how blockchain technology works.
This move builds on earlier steps to regulate crypto in Australia. Exchanges already have to register with AUSTRAC, and Treasury has looked at ways to bring all digital-asset platforms under closer oversight.
AUSTRAC also set rules for crypto ATMs in June last year, capping cash transactions at AU$5,000 and strengthening identity checks to prevent scams. Brendan Thomas, AUSTRAC’s head, highlighted that older Australians are most at risk, making up 72% of ATM users.
Youth engagement and risk awareness
Regulators are also warning young investors about risky habits. ASIC found that one in four Gen Z investors turn to social media influencers or AI chatbots for financial advice.
“Moneysmart’s Gen Z study found that while Gen Z has a strong appetite for reputable and trustworthy financial content, many struggle to find it,” ASIC said. Last year, the regulator even warned 18 influencers for promoting high-risk products without proper licensing.
The new bill isn’t just about licences. It shows Australia wants to make the crypto space safer for everyone. It also improves transparency and protects consumers, helping digital-asset markets grow more responsibly. This approach could even serve as an example for other countries figuring out how to regulate cryptocurrency.
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