Deng Tong, Jinse Finance
On November 26, 2025, Australian Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino submitted the "Companies Act Amendment (Digital Asset Framework) Bill 2025" to Parliament, establishing the country's first comprehensive regulatory framework for businesses holding digital assets on behalf of clients.
This article reviews a series of issues related to cryptocurrency regulation in Australia.
I. Who Regulates?
The main regulatory bodies for cryptocurrency in Australia include: the Australian Securities and Investments Commission (ASIC), responsible for financial services; the Australian Transaction Reports and Analysis Centre (AUSTRAC), responsible for anti-money laundering and counter-terrorism financing; and the Reserve Bank of Australia (RBA), responsible for payment systems and digital currency development.
The regulatory framework for cryptocurrency use and trading in Australia adopts a multi-agency collaborative model.
The Australian Securities and Investments Commission (ASIC) regulates crypto financial products and services, the Australian Transaction Reports and Analysis Centre (AUSTRAC) enforces anti-money laundering/counter-terrorist financing (AML/CTF) requirements on exchanges and service providers, and the Reserve Bank of Australia (RBA) manages central bank digital currency (CBDC) pilot projects and payment system innovations. Licensing and registration requirements for digital asset providers (DAPs) include capital requirements, the use of third-party custodians, and the possibility of foreign providers establishing local branches. Virtual asset providers must conduct due diligence and transaction monitoring under the Anti-Money Laundering/Counter-Terrorist Financing Amendment Act 2024 (scheduled for full implementation in March 2026). Prior to 2017, Australia maintained a neutral stance on cryptocurrencies, allowing Bitcoin and other digital assets to operate in an unregulated environment. Key milestones in Australian cryptocurrency regulation include: bringing cryptocurrency exchanges under the Anti-Money Laundering/Counter-Terrorist Financing Act in 2018; and increased regulatory focus on cryptocurrencies between 2022 and 2023 following the Terra Luna incident. Furthermore, Australia plans to amend the Anti-Money Laundering/Anti-Terrorism Financing Act in 2024 to expand the regulatory scope of virtual asset providers. These changes reflect Australia's shift from passive to proactive regulation, aiming to protect consumer safety and maintain financial integrity. III. Overview of the Corporations Act Amendment (Digital Asset Framework) Act 2025 The Corporations Act Amendment (Digital Asset Framework) Act 2025 will require cryptocurrency companies (such as exchanges and custody service providers) to obtain an Australian Financial Services License (AFSL). The Act amends the Corporations Act, creating two new financial products: "digital asset platforms" and "tokenized custody platforms," both of which require an Australian Financial Services License (AFSL). This license will be used to register these platforms with the Australian Securities and Investments Commission (ASIC). Currently, only exchanges selling "financial products" (such as derivatives) are required to register. Under the Act, cryptocurrency and custody platforms must meet the Australian Securities and Investments Commission (ASIC)'s minimum standards for trading, settling, and holding client assets. They must also provide clients with guidance explaining their services, fees, and risks. The bill exempts “small” companies with trading volumes below A$10 million (US$6.5 million) over 12 months from licensing, as well as companies that trade or provide advisory services on platforms “not related to their primary non-financial activities.” The bill provides an 18-month licensing grace period, which “provides relief to businesses striving to do the right thing.” Anyone “offering advice on cryptocurrencies, conducting cryptocurrency transactions, or arranging for others to conduct cryptocurrency transactions” will be considered to be providing financial services requiring a license. “Globally, digital assets are reshaping the financial landscape. Australia must keep up. If we can seize this opportunity, we can attract investment, create jobs, and establish our financial system as a leader in innovation.” Mulino submitted the bill to the House of Representatives on Wednesday. Source: YouTube. Mulino pointed out that currently, a company can hold an unlimited amount of customer cryptocurrency, “without any financial legal protection,” and the risk of fraud or deception like FTX is “not to be ignored.” "This bill addresses these challenges by reducing vulnerabilities and ensuring similar activities face similar obligations, and it is tailored to the digital asset ecosystem." The legislation will focus on companies holding cryptocurrencies for clients, "rather than the underlying technology itself." "This means it can evolve as new forms of tokenization and digital services emerge." The bill is likely to pass quickly in the House of Representatives, where Prime Minister Anthony Albanese's center-left Labor Party holds a majority of 94 seats. It will then be submitted to the Senate, where Labor may need the support of independent members and the opposition to pass it. IV. Review of Australian Crypto Regulatory Bills In 2017, the Senate passed an amendment that, for the first time, authorized AUSTRAC to regulate "digital currency exchanges" at the legislative level. This legislation laid the foundation for the regulation of cryptocurrency exchanges in 2018. According to the legislation, Bitcoin exchanges in Australia must register with Austrrac and maintain a record in the "Register of Digital Currency Exchanges." Furthermore, exchanges must implement a range of risk mitigation measures, including finding solutions for anti-money laundering and counter-terrorism financing, verifying customer identities, reporting any suspicious activity, and reporting international transactions or transactions exceeding AUD 10,000 to Austrrac. Exchanges are also required to retain certain transaction records and customer identification information for up to seven years. If an exchange provides services without registering with Austrrac, it will be subject to civil and criminal penalties. Those responsible for cryptocurrency exchanges that violate the legislation face a minimum of two years imprisonment plus a fine of AUD 105,000, and a maximum of seven years imprisonment, a personal fine of AUD 420,000, and a corporate fine of AUD 2.1 million. The regulations came into effect in April 2018. This measure signifies that cryptocurrency exchanges in Australia are no longer in a "grey area" but are now entities subject to the financial regulatory system.
INFO 225 Crypto Assets: Financial Products and Services (Published by ASIC)
In 2017, INFO 225 was first published and has been continuously updated since. INFO 225 is the earliest official guideline to clarify the legal application of crypto assets and financial products. If certain crypto assets (or tokens) meet the characteristics of "financial products" (such as certificates of equity, rights to income, redemption rights, etc.), they may be subject to existing financial services laws (such as the Corporations Act 2001). This lays the legal foundation for investor protection, ICOs, tokenized assets, etc.
《Anti-Money Laundering and Counter-Terrorist Financing Amendments, 2024》
The Anti-Money Laundering and Counter-Terrorist Financing Amendments, 2024》 amends the Anti-Money Laundering and Counter-Terrorist Financing Act of 2006 (Anti-Money Laundering/Counter-Terrorist Financing Act), incorporating other designated services in the virtual asset sector.
The newly added designated services comply with the requirements of the Financial Action Task Force (FATF). FATF Recommendation 15 requires countries to implement anti-money laundering/counter-terrorist financing regulation on five key virtual asset services:
Exchange between virtual assets and fiat currency.
Exchange between one or more other forms of virtual assets.
Transfer of virtual assets on behalf of clients.
Custodian or managerial of virtual assets.
Participate in and provide financial services related to the issuance and/or sale of virtual assets by issuers.
Previously, Australia's anti-money laundering/counter-terrorist financing mechanism only regulated transactions between virtual assets and fiat currencies. This amendment expands the scope of regulation to include four new services and ensures that the anti-money laundering/counter-terrorist financing legislation is up-to-date and effectively addresses criminal activities in this area.
The bill will come into effect on March 31, 2026.
INFO 225 Latest Amendment Released
On October 28, 2025, the Australian Securities and Investments Commission (ASIC) released an amended version of Info Sheet 225, clarifying which digital asset products and services may be classified as financial products under the Corporations Act.
This latest update replaces the previous term "crypto-asset" with the broader term "digital assets," aiming to comprehensively cover virtual assets, tokenized assets, and token-based products without omission. While this guidance does not have the force of new law, ASIC states that its purpose is to provide greater regulatory certainty for businesses ahead of the Australian Treasury's planned Digital Asset Platforms and Payment Service Providers Act. This act will introduce a formal licensing regime for cryptocurrency exchanges, custody platforms, and certain stablecoin issuers. Furthermore, ASIC reiterates that under current law, many digital assets, including yield-bearing tokens, staking programs, and asset-referenced stablecoins, may require an Australian Financial Services license. This final version of the guidance, based on the consultation work initiated by ASIC in December 2024, expands the number of practice cases from 13 to 18 and adds chapters on custody, fund management, and transitional exemptions. These practice cases cover a wide range of topics, including exchange-issued tokens, gaming non-fungible tokens (NFTs), yield-generating stablecoins, wrapped tokens, and staking-as-a-service platforms.
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