Assistant Treasurer Daniel Mulino announced on Thursday, September 25, 2025, that Australia has released draft legislation to tighten regulations for cryptocurrency service providers, specifically targeting exchanges and platforms. This move is part of the Albanese Government's digital asset roadmap, initially outlined in March, and was confirmed during a crypto conference where Mulino described it as a cornerstone of the country's strategy for digital assets.
The proposed legislation introduces two new financial products under the Corporations Act: the "digital asset platform" and the "tokenized custody platform". Service providers for these platforms will need to hold an Australian Financial Services License (AFSL) and register with the Australian Securities and Investments Commission (ASIC). Currently, only exchanges dealing with financial products like derivatives must register with ASIC, while others simply register with the Australian Transaction Reports and Analysis Centre (AUSTRAC), which has over 400 registered exchanges, many of which are inactive.
Mulino explained that the law aims to standardize registration and regulation, providing more clarity and security. It includes targeted rules for key crypto activities such as wrapped tokens, public token infrastructure, and staking, designed to accommodate the unique characteristics of digital assets, including how they are held and transactions are settled. "Failures of digital asset businesses have highlighted the consumer risks, particularly where operators pull and hold client assets without consistent safeguards," he noted, emphasizing the goal of protecting consumers and separating responsible operators from risky ones.
Breaches of the new regulations could result in heavy penalties, including fines of up to 16.5 million Australian dollars (approximately $10.8 million), three times the benefit obtained, or 10% of annual turnover—whichever is greater. However, smaller, low-risk platforms are exempt from these rules if they hold less than 5,000 AUD per customer and facilitate annual transactions under 10 million AUD. This exemption aligns with approaches for other financial products like non-cash payment facilities. The legislation does not impose new rules on crypto issuers or non-financial uses, and the Treasury is seeking stakeholder feedback before finalization.