On April 1, Australia officially passed legislation to establish the country’s first nationwide digital asset regulatory framework, requiring all cryptocurrency exchanges and custodial service providers to obtain a financial services license within 6 months in order to operate legally.
This major bill, titled the “Company Law Amendment (Digital Asset Framework) Bill 2025,” successfully cleared both the Australian House of Representatives and the Senate on April 1, officially bringing all businesses that “hold digital assets on behalf of clients” under Australia’s existing financial services licensing regime.
Under the bill’s provisions, the Company Act adds two types of regulated entities: first, “digital asset platforms” that hold cryptocurrency on behalf of users; and second, “tokenized custody platforms” that hold real-world assets (RWA) and issue corresponding digital tokens.
Both types of firms must apply to the Australian Securities and Investments Commission (ASIC) for a financial services license, and they are subject to the same rules that apply to brokers and fund managers, including proper custody of client assets, standardized information disclosures, a strict prohibition on any conduct that misleads investors, and the requirement to establish robust dispute resolution and investor compensation mechanisms.
It’s worth noting that this law does not directly regulate cryptocurrency itself; instead, it targets the firms that act as intermediaries and manage clients’ funds, with the goal of reducing risks commonly seen in past cases where cryptocurrency platforms collapsed, such as the mixing of client assets with company funds, platforms becoming insolvent with liabilities exceeding assets, and the misuse of client assets.
According to research by the Australia Digital Finance Cooperative Research Centre and industry organizations, with the boost of sound regulation, Australia’s tokenization market, payments, and digital asset sector could generate up to AUD 24 billion in economic output each year—about 1% of GDP. If projections based on the prior regulatory path are used, by 2030 it would generate only about AUD 1 billion in revenue.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Is it possible to bypass FSC regulations on buying crypto with card payments? Oadingding rolls out the Wallet Pro service for buying crypto with a U.S. debit card
The OwlPay and Wallet Pro services launched by OdinTing use stablecoin technology to enable B2B cross-border payments, and they partner with international payments giants to showcase their ambitions to expand in the fintech space. By operating from abroad, OdinTing bypasses Taiwan’s regulatory restrictions, offering faster virtual-asset trading, while also facing the newly issued Virtual Assets Services Act; in the future, it may become a reference template for other foreign-invested companies entering the Taiwan market.
CryptoCity8m ago
Encouraging innovation! A U.S. judge bars Arizona from regulating a prediction market and suspends the prosecution of Kalshi
A U.S. federal district court ruled that Arizona is prohibited from relying on its gambling laws to prosecute prediction market platform Kalshi, finding that the federal Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the boundary between state and federal authority in financial market regulation, while Kalshi insists that its business falls under financial products rather than traditional gambling. Rulings on prediction markets vary from state to state, and the Trump family has also expressed support for prediction markets.
CryptoCity2h ago
Bypassing FSC regulations to buy crypto with a credit card: Is it possible? Odin Ding promotes Wallet Pro, a service for buying crypto with a U.S. debit card
OwlPay and Wallet Pro services launched by OdinTing use stablecoin technology to enable B2B cross-border payments, and partner with international payment giants to showcase its expansion ambitions in the fintech space. By operating from abroad, OdinTing bypasses Taiwan’s regulatory restrictions, offering fast virtual-asset trading; meanwhile, as it faces the newly promulgated Virtual Asset Services Act, it is likely to become a reference template for other foreign-invested companies entering the Taiwan market.
CryptoCity3h ago
Nigeria SEC Chief Vows Crackdown on Naira Manipulators, Plans to Delist NGN from P2P Platforms
Nigeria's SEC, led by Emomotimi Agama, will intensify efforts to tackle naira manipulation in the crypto sector by removing the currency from peer-to-peer platforms. Following previous enforcement actions, industry stakeholders are urging for clearer regulations and a unified policy approach.
GateNews3h ago
JPMorgan CFO Warns Stablecoins Could Become 'Regulatory Arbitrage' Tool
JPMorgan CFO Jeremy Barnum cautioned that stablecoins could create regulatory arbitrage, offering bank-like services without necessary oversight. He advocated for a clearer regulatory framework for digital assets, prioritizing consistency over speed.
GateNews5h ago
Encouraging innovation! A U.S. judge bans Arizona’s regulators from prediction markets and suspends the prosecution of Kalshi
A U.S. federal district court has ruled that Arizona is barred from using its gambling law to sue the prediction market platform Kalshi, finding that the Federal Commodity Futures Trading Commission has exclusive jurisdiction. The ruling affects the boundary between state and federal authority in financial market regulation, and Kalshi maintains that its business falls under financial products rather than traditional gambling. Courts in different states have issued differing rulings on prediction markets, and the Trump family has also expressed support for prediction markets.
CryptoCity5h ago
