- Mandate: Crypto exchanges and custodians must now hold an Australian Financial Services Licence (AFSL).
- Economy: The government projects the clear framework will unlock $24 billion in annual productivity gains.
- Exemption: Startups with under $10 million in volume can operate in a “sandbox” without full licensing.
The Australian government has formally moved to bring the cryptocurrency sector inside the federal regulatory perimeter. Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino introduced the Corporations Amendment (Digital Assets Framework) Bill 2025 on Wednesday, establishing a mandatory licensing regime for digital asset platforms.
The legislation amends the Corporations Act to create two distinct financial product categories. The first covers Digital Asset Facilities, entities that hold assets for customers, including exchanges and custodians. The second covers Tokenized Real-World Assets (RWAs), regulating platforms that handle digitized bonds, property, and commodities.
Related: Australia Seeks to Restrict or Ban Crypto ATMs After 85% Scam-Linked Use
Under the new rules, these operators must obtain an Australian Financial Services Licence (AFSL). This imposes strict capital requirements and compels firms to act “efficiently, honestly, and fairly.” The bill also mandates adherence to custody and settlement standards set by the Australian Securities and Investments Commission (ASIC), with non-compliance carrying multimillion-dollar penalties.
The Economic Carrot: $24 Billion
Government officials framed the regulation not as a crackdown, but as an economic unlock. The Treasury projects that a clear legal framework will de-risk institutional participation, potentially generating up to $24 billion in annual productivity gains for the economy.
“Blockchain and digital assets present big opportunities for Australia’s economy,” officials stated during the introduction. The bill passed its first reading immediately, a procedural step that moves it rapidly toward detailed debate and eventual enactment.
Low-Risk Operators Do Not Need Full Licensing
Crucially, the legislation includes a carve-out for innovation. To avoid stifling early-stage development, the bill exempts “low-risk” operators from full licensing requirements.
James Volpe, director of the Web3 education firm uCubed, described the provision as a “sandbox” for experimentation. According to Volpe, operators serving customers with balances under $5,000 and maintaining a total volume below $10 million will not need a full AFSL from day one. This tiered approach allows proof-of-concept projects to launch without the prohibitive costs of full compliance.
Related: Australia Joins the Chorus of Regulators Demanding More From Binance
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Source: https://coinedition.com/australia-mandates-licensing-for-crypto-exchanges-in-24b-regulatory-overhaul/
