Researcher
Across the world, the fog around crypto regulation is starting to lift.
The EU rolled out MiCA. Japan updated PSA and FIEA. The US is pushing forward with the CLARITY Act. And now, Australia is stepping into the same direction with the Digital Assets Framework Bill 2025.
Here’s what’s changing, and why it matters.
Before
Up until now, Australia has operated in a regulatory gray zone when it comes to crypto.
There was no single, clear framework. Rules were fragmented across multiple agencies. And that lack of clarity created real consequences.
Australian investors were exposed during collapses like FTX and Celsius. Banks frequently cut off crypto businesses. Regulators often relied on enforcement through lawsuits instead of clear rules.
This kind of uncertainty doesn’t just hurt users. It pushes companies out of the country and slows down the entire industry.
Recognizing this, the government saw the need to step in with clearer guidance. That led to the introduction of the Digital Assets Framework Bill in November 2025.
After
So what actually changes if this bill comes into force?
At its core, the bill focuses on regulating custodians. In other words, entities that hold and manage customer assets.
It introduces two new categories of financial products:
Digital Asset Platforms (DAPs): exchanges and brokers
Tokenised Custody Platforms (TCPs): custody providers
Previously, many of these businesses only needed to register with AUSTRAC for AML and KYC compliance.
Going forward, that won’t be enough. They will be required to obtain an Australian Financial Services Licence from ASIC.
This is a big shift. It means crypto platforms can no longer operate without formal approval. They will be treated much more like traditional financial institutions.
And with that comes real obligations:
segregation of customer assets
internal controls and risk management
disclosure and reporting requirements
consumer protection standards
Who’s affected
If you look at exchanges operating in Australia today, they fall into three main buckets:
Local exchanges: CoinSpot, Swyftx, CoinJar
Global exchanges with local operations: Kraken, Binance Australia, OKX Australia
Global exchanges without localization: Coinbase, KuCoin, MEXC
Under the new framework, all of them will need more than just AUSTRAC registration. An AFSL becomes essential if they want to keep operating in Australia.
Some players are already moving.
Crypto.com has secured an AFSL through acquiring a local company in the payments and financial services space. Swyftx has publicly stated that it is preparing for licensing in coordination with regulators.
Others have remained relatively quiet so far. Which raises an interesting question. When enforcement kicks in, who doubles down on Australia, and who exits?
Final thoughts
The Digital Assets Framework Bill 2025 has already passed the lower house and is now awaiting approval in the Senate.
If timelines hold, it could pass sometime between Q2 and Q3 of 2026. Implementation would follow 12 months after approval, with an additional 18-month transition period.
The potential upside is clear:
stronger investor protection
increased market trust
better integration with traditional finance
long-term industry growth
But there is also a limitation worth calling out. This bill is heavily focused on custody.
In contrast, regions like Europe, Japan, and the US are building comprehensive frameworks. They are addressing stablecoins, token issuance, and classification of digital assets as part of a broader system.
Australia’s current approach feels more partial. Some of those elements are missing or scattered across separate legislative efforts.
Still, directionally, this is a meaningful step. Regulatory clarity tends to be contagious. When one country moves, neighboring markets often follow. Australia’s shift could help accelerate clearer crypto regulation across Asia as a whole.
