Australia announced new legislation for crypto under Digital Assets Framework Bill 2025, where crypto platforms need to obtain financial service licenses.
Australia joins the race for a regulatory framework
The “Corporations Amendment (Digital Assets Framework) Bill 2025” passed the Senate on Wednesday, completing its passage through both houses of Parliament after being introduced by the Treasury in November last year.
The move brings crypto service providers into Australia’s existing financial landscape, indicating a shift towards tighter regulations of the fast-growing industry. The bill states that the crypto service providers are expected to obtain it under the Australian FinanciaLicenseces Licence (AFSL).
The bill did not specifically mention the different digital assethat are in the subject. However, an official explanatory memo points to digital assets as being “subject to the same general legal frameworks as other assets, including property, consumer, insolvency,family,nal, family and tax laws.”
The aim is to ensure that crypto platforms would act efficiently, with honesty and fairness, not crypto itself. It addresses the disclosing of the required information with users, including how their assets are stored and maintained alongside risk controls. It pinches on the risks of commingling, insolvency, and misuse of assets that wefor reasons of loss in crypto failures.
Experts call it a regulatory milestone
The regulatory body is expected to begin in 12 months after the final sign-off, providing the businesses ample time to comply. Industry participants viewed the bill as a key milestone for crypto regulation in the country.
“For the first time, we have a clear regulatory foundation that recognizes digital assets as part of the future of financial market infrastructure, not as a fringe innovation, but as a legitimate and growing asset class,” Kate Cooper, CEO of OKX Australia, said in a statement to the media.
According to estimates by the Digital Finance Cooperative Research Center and various industry groups, Australia’s economy could see an annual boost of up to A$24 billion, approximately 1% of its GDP, from the growth of tokenized markets, digital assets, and digital payments. Under the previous regulatory path, the country was intending to capture just A$1 Billion of that by 2030.
A Kraken spokesperson said the law provides a “top-down signal” to show how serious the country is about digital assets, aclarityt a clarity in rules and regulations woulinstitutions the abilitynstitutions to invest and expand locally.
Cooper called the bill a “pivotal moment,”as it builds a foundation for institutional participation and long-term capital allocation.
