Australia Passes Landmark Law Requiring Crypto Exchanges to Obtain Licenses

Australia enacts first comprehensive crypto regulation

On April 1, 2026, the Corporations Amendment (Digital Assets Framework) Bill 2025 cleared both chambers of Australia's parliament. The legislation marks the country's first comprehensive regulatory framework for digital assets, placing crypto exchanges and custodial services under the same oversight standards that apply to brokers and fund managers.

Why this matters

Previously, Australian crypto platforms only needed to register with anti-money laundering authorities — as long as their products were not classified as financial instruments. The new law fundamentally shifts this approach by subjecting crypto exchanges to the same rigorous requirements as traditional financial market participants. For one of the largest economies in the Asia-Pacific region, this represents a significant move toward building a transparent and consumer-protected environment for digital asset users.

Two new regulated asset classes

The bill amends the Corporations Act by introducing two new regulated categories:

• Digital asset platforms — exchanges and similar services that hold digital assets on behalf of users.
• Tokenized custody platforms — firms that issue and hold virtual tokens backed by real-world assets.

Operators in both categories are required to obtain an Australian Financial Services Licence (AFSL) from the Australian Securities and Investments Commission (ASIC). The license imposes obligations related to client fund protection, capital adequacy, disclosure transparency, and participation in dispute resolution mechanisms.

Expanded ASIC powers and small business exemptions

Under the new framework, ASIC gains expanded authority to set rules governing asset custody, governance, and risk management. Civil penalties will apply for non-compliance.

However, the legislation includes carve-outs for smaller operators. Firms with less than 5,000 AUD in client funds per customer and annual turnover below 10 million AUD are exempt from full licensing requirements.

Timeline and implementation

The bill currently awaits Royal Assent — the final formal step. Once granted, the law will take effect 12 months later, with an additional transition period provided to give businesses time to comply.

Jazz Oswald, former Deputy Director of Digital Asset Policy at the Commonwealth Treasury, welcomed the bill's passage. He noted that the government had added clarifications to the explanatory memorandum regarding how the law should apply when control over digital tokens is maintained through multi-party computation (MPC).

Australia's roadmap for crypto legislation was first outlined in early 2025, with the stated goal of creating a regulated ecosystem that balances innovation with consumer protection.