Australia Backs Crypto Licensing
Australia’s Senate committee backed a licensing framework that would force crypto and tokenized custody platforms to obtain licences and comply with consumer-protection rules similar to banks—aimed at unlocking institutional flows across APAC. The move frames Australia as a potential regional compliance model and could accelerate institutional tokenisation if the bill clears next steps.
Australia’s Senate Economics Legislation Committee released a formal report on March 16 recommending passage of the Corporations Amendment (Digital Assets Framework) Bill 2025 report). The Bill was introduced to Parliament on November 26, 2025 by Assistant Treasurer Daniel Mulino and explicitly creates new categories called “digital asset platforms” and “tokenised custody platforms” that will be treated as financial products under the Corporations Act media release) and bill text). The Act, as drafted, would commence the day after a 12‑month period following Royal Assent, putting a statutory 12‑month lead time before the regime takes effect commencement clause) and parliamentary submissions and commentary note the Bill then builds in a short transitional window for existing operators to seek authorisations transitional detail). ASIC has issued a sector‑wide class no‑action letter requiring eligible firms to lodge AFSL applications (or variations) on or before June 30, 2026 to rely on relief while applications are assessed ASIC PDF). The government’s exposure materials set specific small‑operator thresholds — platforms holding under AU$5,000 per customer and facilitating under AU$10 million in transactions per year would be exempt from AFSL coverage Treasury media release). Legal advisers flag the Bill’s policy frame as “same activity, same risk, same regulation,” positioning Australia as a compliance model in APAC and signaling that institutional counterparties may condition access on AFSL‑grade custody and disclosure controls legal analysis) and practical implications). The legislation draws a sharp regulatory line at intermediaries that hold or tokenize assets — the Bill defines a “custodial staking arrangement” and preserves non‑custodial staking outside the AFSL perimeter, meaning on‑chain DeFi protocols that do not custody user keys are less likely to be captured while centralized staking or wrapped/RWA tokenisers face new prudential and disclosure duties bill changes) and bill text).
