Australia passed legislation on Wednesday creating the first comprehensive regulatory framework for digital assets, requiring cryptocurrency exchanges and custody providers to obtain financial services licenses.
On April 1, the Companies Amendment (Digital Asset Framework) Bill 2025 was passed by both houses of Congress, bringing companies that hold digital assets on behalf of customers into the existing Australian financial services license system.
Australia’s bill creates two new regulatory categories under the Corporations Act: digital asset platforms that hold cryptocurrencies on behalf of users and tokenized custody platforms that hold real-world assets and issue corresponding digital tokens.
Operators of both are required to obtain an Australian financial services license from ASIC, subjecting them to the same core rules as a broker or fund manager, including requirements to protect client assets, provide standardized disclosures, avoid misleading conduct and maintain a dispute resolution and compensation regime.
Rather than regulating cryptocurrencies themselves, the law targets intermediary companies that control customer funds and is intended to reduce risks such as commingling, bankruptcy and misuse of assets that have caused losses in past cryptocurrency failures.
Research from the Digital Finance Collaborative Research Center and industry groups estimates that Australia could generate up to A$24 billion in revenue annually from tokenized markets, payments and digital assets, accounting for approximately 1% of GDP. Under the previous regulatory path, the country was expected to receive only A$1 billion of this by 2030.
A Kraken spokesperson said the law provides a “top-down signal” that Australia is serious about digital assets, adding that clearer rules will give companies the confidence to invest and expand locally.
Kate Cooper, CEO of OKX Australia and co-chair of the Australian Digital Economy Council, called the bill a “pivotal moment” and said it laid the foundation for institutional engagement and long-term capital allocation.