Australia Passes Bill Compelling Crypto Platforms to Obtain Financial Licenses

Australia has approved new legislation that brings crypto businesses under the country’s formal financial services regime. The measure, introduced by the Treasury last November, passed both chambers of parliament, setting clear requirements for companies dealing in digital assets.

Known as the Corporations Amendment (Digital Assets Framework) Bill 2025, the law compels crypto exchanges and custody providers to secure an Australian Financial Services License. It applies to businesses defined as tokenized custody operators and digital asset platforms, placing them under standards similar to those governing traditional financial institutions.

Under the new law, platforms are required to meet obligations designed to protect users and enhance transparency. Companies are expected to operate in a fair, efficient, and honest manner. They must also provide clear information on how customer funds are stored and implement robust systems for risk management and governance.

While the legislation establishes licensing requirements, it stops short of offering a precise legal definition for digital assets. Instead, accompanying guidance indicates that such assets fall within existing legal frameworks that cover areas like property rights, taxation, insolvency, and criminal law.

Authorities have set a 12-month period following Royal Assent before the rules become enforceable, allowing businesses time to adjust.

Industry figures have described the legislation as a long-awaited step. OKX Australia CEO Kate Cooper said the move provides a clear regulatory base that had previously been missing. She noted that recognizing digital assets within the financial system reflects their growing role in market infrastructure.

Cooper added that attention must now turn to how the rules are applied, calling for detailed standards, stronger safeguards for users, and ongoing dialogue between regulators and industry participants.

John O’Loghlen, who leads Coinbase’s operations in the Asia-Pacific region, also welcomed the development, calling it a turning point for the country’s crypto landscape. However, he stressed that further reforms should follow, particularly in areas such as stablecoin regulation. According to O’Loghlen, maintaining momentum will be essential if Australia aims to remain competitive in the global digital economy.

Advocacy organizations have also voiced support while highlighting unresolved challenges. Stand with Crypto Australia praised the legislation but pointed to ongoing concerns around debanking, a practice that has affected access to financial services for some crypto users. The organization indicated it will continue to campaign for solutions to the issue alongside broader industry reforms.

The law represents a broader change in regulatory thinking, bringing previously unlicensed crypto operators into a structured oversight system. It underscores Australia’s effort to integrate digital assets into its financial architecture while addressing risks tied to the rapidly evolving sector.

As more countries move to establish regulatory systems governing the crypto sector, entities like Cantor Equity Partners Inc. (NASDAQ: CEP) are likely to have more solid information upon which to base any expansion plans that they may have.

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