Australia Advances With Crypto Regulation Bill

By: Eliza Bennet

Australia has progressed significantly towards the regulation of cryptocurrency platforms within its financial framework. The government's new legislative initiative proposes that these platforms, including exchanges and custody providers, be governed by the existing financial services laws. This strategic move aligns digital assets with traditional financial institutions, ensuring a level playing field and consumer protection.

Assistant Treasurer Daniel Mulino introduced the Corporations Amendment (Digital Assets Framework) Bill 2025, which mandates crypto service providers to obtain an Australian Financial Services License (AFSL). This step comes after receiving cautious support through an industry consultation process. Mulino emphasized that this regulatory shift is essential for Australia to stay competitive in the rapidly evolving digital economy.

The proposed regulation is part of Australia's broader strategy to harness the potential of digital assets to stimulate investment, job creation, and innovation within its financial sector. By regulating these platforms under financial services laws, the government aims to enhance consumer protection and establish Australia as a leader in fintech innovation.

With the Australian Securities and Investments Commission (ASIC) designated as the primary regulator, the country reiterates its commitment to implementing robust consumer-protection measures. This initiative reflects Australia's proactive adaptation to global financial trends, ensuring that its financial system remains both safe and progressive.