Australia Tightens Crypto Rules to Protect Users
Stronger trust and a more stable environment
Assistant Treasurer Daniel Mulino introduced the bill, noting that digital assets are reshaping the global financial landscape and Australia must keep pace. A clear regulatory framework could attract investment, create jobs, and strengthen the country’s position as an innovator.
A public consultation preceded the introduction, with most industry representatives expressing support, though they requested more clarity and simplicity. The final text reflects their feedback and defines obligations more precisely.
Mandatory licensing and the end of the free-for-all
Currently, companies can hold unlimited amounts of client crypto without legal safeguards. Mulino warned that such an environment is vulnerable and fraud risks cannot be ignored. The bill therefore requires all crypto exchanges, custodians, and entities that advise, trade, or facilitate transactions in digital assets to obtain an Australian Financial Services License (AFSL).
The law creates two new categories of financial products — “digital asset platform” and “tokenized custody platform.” They will fall under ASIC oversight and must meet minimum standards for transactions, settlement, and handling of client funds. Users will receive mandatory disclosures on services, fees, and risks.
Exemptions for small players and a long transition period
To avoid overburdening small businesses, firms with annual transaction volumes under ten million Australian dollars are exempt, as are entities for which crypto is only an incidental activity. The bill also includes an 18-month transition period to give companies time to adapt.
Smooth passage expected and market impact
The governing Labor Party holds a comfortable majority in the House, so a smooth passage is expected. The bill will then move to the Senate, where support from independents or part of the opposition will be needed.
If passed, Australia will join countries regulating cryptocurrencies similarly to other financial instruments. The result could be stronger investor protection, fewer exchange collapses, and a more stable environment for the crypto industry. For everyday users, it offers greater certainty that their assets will be managed under clear, well-defined rules.
Sources:
https://treasury.gov.au/sites/default/files/2025-03/p2025-628504-s.pdf
