Edgen Crypto·Apr 01 2026, 09:57Key Takeaways:
Australia passed its first comprehensive digital-asset law on April 1, requiring crypto exchanges and custody providers to obtain Australian Financial Services Licenses within six months.
“This bill is a pivotal moment for the digital asset industry in Australia,” Kate Cooper, CEO of OKX Australia and co-chair of the Digital Economy Council of Australia, said. She added that it establishes a foundation for institutional participation and long-term capital allocation.
The Corporations Amendment (Digital Assets Framework) Bill 2025, which cleared both houses of parliament, creates two new regulated categories: digital asset platforms and tokenized custody platforms. This brings firms that hold digital assets for customers under the same core rules that apply to traditional brokers and fund managers, including requirements to safeguard client assets and provide standardized disclosures. The Australian Securities and Investments Commission (ASIC) will oversee the licensing regime.
The legislation is designed to position Australia to capture a larger share of an estimated A$24 billion annual digital finance opportunity, according to research from the Digital Finance Cooperative Research Center. Under the previous regulatory path, the country was on track to capture just A$1 Billion of that by 2030.
Instead of regulating crypto itself, the law targets the intermediary companies that control customer funds. The goal is to reduce risks like the commingling of funds, insolvency, and misuse of assets that have led to significant investor losses in the past. By bringing digital asset platforms under the existing Australian Financial Services Licence regime, regulators aim to build trust and attract new investment.
A spokesperson for the crypto exchange Kraken said the law provides a “top-down signal” that Australia is serious about digital assets, giving firms the confidence to invest and expand locally. The move provides a clear contrast with other jurisdictions in the region, such as Hong Kong, which missed its self-imposed March deadline to issue licenses for Hong Kong dollar stablecoin issuers.
The new Australian law is expected to increase compliance costs for exchanges but is broadly seen by the industry as a positive step toward market legitimacy and long-term growth.
This article is for informational purposes only and does not constitute investment advice.