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Australia’s Treasury has unveiled draft legislation that would require crypto exchanges and certain service providers to obtain Australian financial services licenses. The proposal aims to amend the Corporations Act 2001, classifying digital asset platforms (DAPs) and tokenized custody platforms (TCPs) as financial products. This move would bring them under the same licensing rules and consumer protections as traditional financial intermediaries.
Authorities explained that the framework is focused on businesses holding assets on behalf of clients, not the digital assets themselves. Treasury officials highlighted that past failures of crypto intermediaries have led to heavy consumer losses, making stricter oversight necessary. DAPs cover trading platforms and brokerages, while TCPs include services managing tokenized physical assets.
Assistant Treasurer Daniel Mulino said the legislation will extend existing financial laws in a “targeted way,” with the Australian Securities and Investments Commission (ASIC) set to issue licenses. Public consultation is open until October 24, 2025, marking a major step toward stronger regulation of the country’s crypto sector.
