AFSL Mandatory for All Exchanges

• Corporations Amendment (Digital Assets Framework) Bill cleared both Houses on April 1.
• Crypto businesses in Australia now need an Australian Financial Services Licence (AFSL).
• The law creates two categories: Digital Asset Platforms and Tokenised Custody Platforms.

Australia passed the Corporations Amendment (Digital Assets Framework) Bill 2025, requiring crypto businesses to obtain an Australian Financial Services Licence (AFSL). The new law introduces licensing, custody rules, and operational standards for exchanges and digital asset platforms.

Australia Requires AFSL for Crypto Exchanges

The bill cleared both houses of Parliament on April 1. Under the framework, crypto firms operating in Australia must now obtain an AFSL, similar to traditional financial institutions.

The rule applies to exchanges, custodians, and other digital asset intermediaries. Regulators aim to bring crypto platforms under the existing financial services regime.

The law introduces two licensing categories. Digital Asset Platforms (DAPs) cover exchanges and services that hold user crypto. Tokenised Custody Platforms (TCPs) apply to firms holding assets while issuing tokenized ownership.

Both categories must follow licensing, compliance, and transparency requirements.

Licensed firms must maintain governance systems, risk controls, and complaint processes. They must also clearly explain custody terms and safeguard customer funds.

Australia Crypto Law Targets Regulatory Gaps

The overhaul aims to close gaps in Australia’s crypto oversight. Previously, exchanges were mainly regulated under anti-money laundering rules with limited financial supervision.

The new framework introduces custody protections and operational safeguards. These measures address risks seen during past exchange collapses.

Smaller Crypto Firms Get Limited Exemptions

Smaller operators do get some relief. For instance, platforms doing less than $10 million in yearly trades or holding under $5,000 per user are exempt from this new framework.

The rules will kick in after a transition window (likely up to 18 months), giving companies time to get their licenses and operations in order.

Kate Cooper, CEO of OKX Australia and co‑chair of the Digital Economy Council of Australia, said the bill lays the groundwork for big institutions to get in and commit long‑term capital.

Related: Australia Pushes Tokenization, Signaling $17B Market Opportunity