A Cornerstone of Australia’s Digital Asset Roadmap
Australia has taken a major step toward tightening oversight of crypto platforms with new draft legislation that would formally bring digital asset businesses under the country’s financial services laws. Announced Wednesday by Assistant Treasurer Daniel Mulino at the Global Digital Asset Regulatory Summit, the bill is being pitched as the “cornerstone” of the government’s digital asset roadmap.
The legislation comes as part of Canberra’s plan to align itself with international peers like the U.S. and EU, both of which have stepped up rules around crypto custody, exchanges, and stablecoins.
New Financial Products and Licensing Rules
The bill introduces two new financial products under the Corporations Act: Digital Asset Platforms and Tokenized Custody Platforms. These categories will now fall under the same licensing and consumer protection frameworks that apply to banks, brokers, and other financial institutions.
Operators would need to secure an Australian financial services license, with obligations to manage conflicts of interest, provide dispute resolution systems, and uphold minimum custody and settlement standards.
Platforms that breach these obligations could face penalties of up to 10% of annual turnover. However, small platforms processing less than $5,000 per client or $10 million in annual transactions would be exempt.
Closing Consumer Protection Gaps
Mulino stressed that recent collapses in the sector highlighted dangerous gaps in consumer safeguards, particularly around pooled client assets.
The draft law also sets rules for wrapped tokens, public token infrastructure, and staking, which Mulino admitted have struggled to fit within frameworks designed for traditional finance.
Flexibility for a Fast-Moving Industry
Acknowledging the rapid pace of innovation, the draft law gives regulators flexibility to adapt requirements as technologies evolve. Mulino argued that rigid rules could leave loopholes or choke innovation, while a more adaptive framework can balance consumer protection with industry growth.
The government will work closely with the Australian Securities and Investments Commission (ASIC) on transitional arrangements to ensure smooth adoption of the rules. Mulino emphasized that consultation is still ongoing:
Industry Responds: “A Long Process, But Necessary”
Crypto industry leaders have cautiously welcomed the proposal.
With the draft law now open for consultation, Australia appears committed to delivering a clearer, safer, and more competitive crypto environment—one that could define its role in the global digital economy.
