The Australian government is taking significant steps to regulate digital assets within its financial framework. In a recent announcement, the Treasury introduced a draft proposal aimed at requiring cryptocurrency companies to obtain financial service licenses and categorize their operations as financial products.
This proposed legislation seeks to align crypto firms with existing regulatory standards applicable to other financial institutions. Under this framework, companies operating digital asset platforms (DAPs) and tokenized custody platforms (TCPs) would be subject to oversight by the Australian Securities and Investments Commission (ASIC), which serves as the country’s financial securities regulator.
Daniel Mulino, the assistant treasurer, unveiled the draft legislation on Thursday, emphasizing the government’s commitment to incorporating cryptocurrency activities into a structured regulatory environment. “The final legislation will introduce a new framework for digital asset businesses in Australia,” Mulino stated. “It will do so by extending existing financial services laws but in a targeted way.”
The new regulations aim to ensure consumer protection and promote accountability within the growing sector of digital finance, placing DAPs and TCPs on par with traditional financial intermediaries. As part of the regulations, these firms would be required to adhere to the same licensing requirements as established financial entities, thereby enhancing oversight and safeguarding investors.
The draft proposal is currently open for consultation with stakeholders, allowing a period for input and feedback from the crypto industry and the public. This consultation phase is set to conclude on October 24, 2025, giving various stakeholders the opportunity to share their insights and concerns regarding the new regulatory framework.
Australia’s move to regulate crypto comes amid a broader trend of increased governmental scrutiny of digital assets globally. Many countries are in the process of defining their strategies for addressing the complexities introduced by cryptocurrencies and blockchain technology.
As the cryptocurrency industry continues to evolve at a rapid pace, the Australian Treasury’s initiation of a structured regulatory approach signifies the recognition of digital assets as a legitimate form of financial activity, one that necessitates oversight similar to traditional financial products.
Experts suggest that the proposed regulations could foster greater trust among consumers and investors by establishing a clear set of guidelines and protections for those engaging with crypto services. By incorporating these assets into the financial services framework, Australia aims to cultivate a more secure environment that encourages innovation while mitigating risks associated with unregulated markets.
As this draft legislation unfolds and discussions continue, all eyes will be on Australia’s approach and how it influences other jurisdictions contemplating similar regulatory paths in the dynamic realm of cryptocurrency.
