Australia Proposes New Crypto Licensing Rules Under ASIC Oversight

Australia’s Treasury has introduced a draft proposal that could reshape the country’s cryptocurrency industry by requiring digital asset firms to obtain financial service licenses. The move aims to bring crypto companies under the regulatory framework of the Australian Securities and Investments Commission (ASIC), treating them in the same way as traditional financial products.

The draft legislation, revealed by Assistant Treasurer Daniel Mulino, outlines that Digital Asset Platforms (DAPs) and Tokenized Custody Platforms (TCPs) will be subject to the same licensing, compliance, and consumer protection requirements as other financial intermediaries. By applying existing financial services rules to the crypto sector, the government intends to provide greater oversight and protect Australian investors from risks in the rapidly growing digital asset market.

Mulino emphasized that the initiative is not about creating entirely new regulations but about extending proven financial services laws to crypto in a targeted manner. “The final legislation will introduce a new framework for digital asset businesses in Australia. It will do so by extending existing financial services laws but in a targeted way,” he explained.

The proposed framework would require crypto exchanges, custody providers, and other service operators to hold official licenses, ensuring they meet standards around governance, transparency, and consumer protection. This marks a significant step toward aligning Australia with global efforts to regulate the cryptocurrency sector, following similar moves in jurisdictions such as the European Union and the United States.

The Treasury has opened the draft for public consultation, giving stakeholders until October 24, 2025, to submit feedback. If enacted, the legislation could transform Australia’s crypto ecosystem by legitimizing digital asset services while reducing risks tied to fraud, insolvency, and poor industry practices.

With stronger regulations on the horizon, crypto firms operating in Australia will need to prepare for compliance under ASIC oversight—signaling a new chapter in the nation’s digital finance landscape.