Australia unveils a draft law to regulate crypto platforms under the financial services framework. The proposal includes mandatory licenses, strict consumer protections, and multi-million dollar fines for non-compliance.
Australia is preparing for a groundbreaking shift in the cryptocurrency sector. The government of Anthony Albanese, through the Treasury and the Ministry of Financial Services, has introduced a draft bill that seeks to bring crypto platforms under the traditional financial services framework.
To begin with, the proposal designates both digital asset platforms (DAPs) and tokenised custody platforms (TCPs) as new financial products under the Corporations Act. Consequently, exchanges and custodians will be required to obtain an Australian Financial Services Licence (AFSL), compelling them to operate with higher standards of transparency, fairness, and accountability.
In addition, the draft law establishes severe penalties for non-compliance. Specifically, fines could reach up to AUD 16.5 million, or 10% of the company’s annual turnover, or even three times the illicit gains—whichever is greater.
Nevertheless, the government intends to balance regulation with innovation. Therefore, the bill introduces exemptions for low-risk platforms, such as those holding less than AUD 5,000 per customer or processing annual transactions under AUD 10 million. Furthermore, non-financial uses of tokens—such as in art, entertainment, or utility contexts—will not fall under this regulatory umbrella.
On top of this, the government has opened a public consultation period, which will remain active until October 24, 2025. This consultation allows businesses, investors, and citizens to submit feedback before the final draft is submitted to Parliament.
Ultimately, the implications of this law could be far-reaching. For consumers, it promises stronger protection and greater confidence in crypto markets. For platforms, however, it means higher compliance costs and stricter operational requirements. Still, if approved, the reform would position Australia as a global pioneer in establishing a clear and robust legal framework for digital assets.
