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Australia Mandates Financial Services Licences for Crypto Exchanges Under New Bill

Australia Mandates Financial Services Licences for Crypto Exchanges Under New Bill

New law brings crypto exchanges under the traditional financial regulation framework.

Written by Rahul Dhingra, Edited by David Delima | Updated: 2 April 2026 17:12 IST

Australia Mandates Financial Services Licences for Crypto Exchanges Under New Bill

Photo Credit: Unsplash/Marcus Reubenstein

Australia moves to regulate crypto exchanges under financial services laws

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Highlights

Crypto exchanges must obtain an AFSL to operate locally
Platforms to follow compliance rules like financial firms
The law focuses on investor protection and market transparency

The Australian government has passed a new legislation that is meant to bring digital asset platforms and tokenised custody platforms under the country's financial services licensing regime. This rule applies to all digital asset service providers operating in Australia, as it will help in bringing more clarity, transparency, and security to investors. The bill is called The Corporations Amendment (Digital Assets Framework) Bill 2025 and has now cleared both houses in the Australian parliament. This also marks a big step for Australia in its effort to bring a regulatory framework for digital assets.

New Rules Aim to Align Crypto Platforms With Financial Regulations

This regulation has a core objective of targeting Australia's cryptocurrency market, and in doing so, will enforce strict Know Your Customer (KYC) protocols and anti-money laundering practices. The bill now sits waiting for the royal assent, which is the final step before becoming a law. Additionally, it takes another 12 months after the assent, with an additional transition period for businesses to comply.

The bill also requires digital asset service providers, which include exchanges and custody platforms, to obtain an Australian Financial Services Licence (AFLS) from the Australian Securities and Investments Commission (ASIC), the country's financial regulator.

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An industry group called The Digital Economy Council of Australia, which represents Australia's digital economy, praised this move in a statement on LinkedIn. “For the first time, we have a legislative framework that directly addresses digital asset platforms, and it provides long-awaited clarity for businesses, investors, and regulators, and marks a shift from uncertainty toward implementation,” DECA said. The former assistant director of digital asset policy at the Commonwealth Treasury, Jazz Ozvald, also took to LinkedIn to express delight at the milestone in passing the bill.

The bill has made progress in the past, when Australian lawmakers put forward ideas to regulate crypto platforms under the financial services framework. The earlier proposal spelt out licensing requirements for exchanges and custody providers. Its goal was to bring crypto firms in line with traditional financial rules while also better protecting investors and lowering the risks associated with market volatility.

Australia is now positioning itself as one of the countries that is tightening regulatory scrutiny of digital assets. This new licensing rule is expected to bring greater regulatory certainty and trust to the sector, even though it might increase compliance costs for operators. As the framework develops, it could help shape how cryptocurrency businesses work in Australia's financial system and help keep the market stable over the long term.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: ASIC, Crypto Regulators, Crypto Regulations

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More