Crypto platforms face AFSL licensing under 2025 bill

Senate backs advancing Treasury Laws Amendment Bill 2025 (AFSL-based)

An Australian Senate committee has recommended advancing legislation to establish a digital asset platform regime. The push aligns with the government’s AFSL-based Treasury Laws Amendment Bill 2025 for crypto and digital assets.

As reported by Information Age (ACS), the Bill would require digital asset sellers and platforms to hold an Australian Financial Services Licence (AFSL), applying existing financial services law rather than creating a bespoke regime.

Why it matters: clarity, consumer safeguards, global alignment

Clear licensing perimeters would give platforms actionable guidance and strengthen consumer safeguards. Policy proposals emphasise custody controls, capital resources, disclosures, and governance, with technical detail to be finalised in delegated rules and regulatory guidance.

According to the Australian Treasury, recent consultations draw on international frameworks such as the EU’s MiCA to promote consistency and competitiveness. That global alignment may reduce fragmentation for multi‑jurisdictional platforms.

If enacted, platforms operating in Australia would need to assess scope and pursue AFSL authorisations where required. Operational uplift would likely include segregation of customer assets, minimum capital, incident reporting, and enhanced disclosure.

For investors, an AFSL perimeter could mean clearer recourse and stronger custody norms, though not all tokens would be treated as financial products. Timing depends on parliamentary passage and any transition periods set in delegated legislation. This article is not legal advice.

Stakeholder positions: ASIC, Treasury, Bragg, and industry views

Regulatory stance: ASIC enforcement and Treasury’s AFSL-based approach

The corporate regulator has emphasised bringing digital asset services up to the same standards as traditional finance. As reported by Capital Brief, its chair warned Australia risks falling behind on tokenisation and stablecoins without clearer policy settings.

Treasury’s AFSL‑based approach channels crypto platform risks into an established licensing, conduct, and disclosure framework. That design targets technology‑neutral regulation and stronger enforcement levers under existing law.

Industry and legal views: Swyftx, Blockchain Australia, FinTech Australia, Piper Alderman

Industry submissions from peak bodies emphasise technology neutrality and the “same risk, same regulation” principle, favouring integration into existing financial laws over a standalone crypto licence, as reported by Vixio. The same reporting notes Senator Andrew Bragg has urged quicker passage to limit offshore drift and consumer exposure.

Legal views are more divided. According to the Australian Parliament’s committee materials, a major law firm, Piper Alderman, argued a bespoke framework could better balance innovation with consumer protection.

Many market participants continue to seek certainty on custody, capital, and disclosure settings before committing to major compliance programs. “The promise of crypto regulation … is not as important … as the actual delivery,” said Jason Titman, CEO of Swyftx.

FAQ about Australian crypto regulation

Will crypto exchanges and brokers need an Australian Financial Services Licence (AFSL) under the proposed laws?

Under the proposal, digital asset sellers and platforms would require an AFSL. Scope depends on final definitions and any transitional relief once the Bill progresses.

What consumer protections, custody, capital requirements, and disclosure rules, are included in the proposal?

Consultations emphasise custody safeguards, capital adequacy, governance, and disclosures. Specific thresholds and technical standards are expected in delegated legislation and regulator guidance.