Australian regulators have introduced a new bill that proposes regulating crypto platforms under the existing financial services law that governs traditional financial products and services.

Dubbed the Corporations Amendment (Digital Assets Framework) Bill 2025, the legislation, introduced by Assistant Treasurer Daniel Mulino on November 26, outlines various licensing, conduct, and custody standards for crypto service providers and the digital asset market in general.

While delivering his remarks to the House, Mulino said the bill was necessary for Australia to “keep pace” as “digital assets are reshaping finance” around the globe.

“If we get this right, we can attract investment, create jobs and position our financial system as a leader in innovation,” Mulino said.

According to the lawmaker, the bill is the result of a revised final version of a September 2025 draft announced by the Treasury following public consultation.

While the industry supports regulating digital asset platforms under financial services law, it previously expressed concerns about the clarity and complexity of the initial draft.

Mulino said the new bill addresses many of these concerns, calling it the cornerstone of the government’s crypto roadmap.

Some of the key mandates in the bill include licensing requirements for crypto firms that hold or deal with customer assets, and it amends the Corporations Act to create two new classes of financial products: a digital asset platform and a tokenized custody platform.

At the moment, crypto platforms are only required to register with the Australian Transaction Reports and Analysis Centre.

As of press time, there are roughly 400 registered exchanges, and the vast majority of these platforms are inactive, according to past reporting.

Crypto exchanges are also able to hold unlimited amounts of customer funds without any specific requirements for safekeeping or conduct, which, according to Mulino, presents various risks and “cannot be ignored.”

“This bill responds to those challenges by reducing loopholes and ensuring comparable activities face comparable obligations, tailored to the digital asset ecosystem,” Mulino explained.

Also, the bill redirects focus on service providers that hold digital assets for clients rather than the underlying technology itself, which will allow it to evolve as new forms of tokenization and digital services emerge.

Further, those offering advice or facilitating transactions on digital assets would also be treated as financial service providers and hence would require a license.

Custody platforms and related entities will have to comply with ASIC’s minimum standards for handling, settlement, and reporting of client assets and also bolster transparency by providing clients with clear guides regarding their services, risks, and fee structures.

Mulino’s bill will also introduce exemptions for qualifying “small-scale” companies to promote innovation and reduce regulatory burden for emerging businesses.

Notably, those with less than 10 million Australian dollars in annual transaction volume and those that hold under A$5,000 per client will be exempt from licensing requirements.

If passed, the bill would provide an 18-month grace period on licensing to give companies time to comply.

To become law, the bill needs to pass the House, where the Labor Party holds a majority, and then clear the Senate.

While the new framework would bring much-needed clarity to the Australian digital asset sector, it also poses the risk of regulatory overreach if kept unchecked.

As such, regulators have also proposed strong enforcement mechanisms to curb misconduct and ensure accountability.

Back in September, Australia’s Treasury department suggested stiff turnover-based penalties for crypto firms that breach licensing obligations, including fines that could reach up to 10% of a defaulter’s annual revenue.

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