Australia has passed new legislation requiring crypto platforms to obtain financial services licenses, marking a key step in regulating the rapidly growing industry.

The legislation, titled "Corporations Amendment (Digital Assets Framework) Bill 2025," passed the Senate on Wednesday, clearing both houses of the parliament. It was introduced by the Treasury in November 2025.

The bill brings crypto service providers under the financial services licensing regime. Specifically, it mandates that "digital asset platforms" and "tokenized custody platforms" hold an Australian Financial Services Licence. 

While the bill does not explicitly define "digital assets," an official explanatory memo notes that digital assets are "subject to the same general legal frameworks as other assets, including property, consumer, insolvency, criminal, family and tax laws."

Under the new legislation, crypto platforms are required to act "efficiently, honestly and fairly," provide clear disclosures on how customer assets are stored, and maintain strong governance and risk controls.

The framework is expected to commence 12 months after Royal Assent, with a transition period for businesses to comply, according to the memo.

Crypto regulation milestone

Industry participants have called the passage of the bill a key milestone for crypto regulation in the country.

"For the first time, we have a clear regulatory foundation that recognizes digital assets as part of the future of financial market infrastructure — not as a fringe innovation, but as a legitimate and growing asset class," Kate Cooper, CEO of OKX Australia, said in a statement shared with The Block.

"The focus now shifts to implementation — clearer standards, stronger consumer protections and ongoing industry engagement with regulators will be essential to ensure Australia builds a system that is both trusted and globally competitive," said Cooper.

John O'Loghlen, APAC managing director of Coinbase, shared similar views, describing the bill's passage as a "defining moment" for Australia's crypto industry.

"While this strengthens Australia's standing in the global digital economy, we urge the government to prioritize the development of its broader reforms for digital assets and tokenization, especially the development of the stablecoin framework," O'Loghlen added.

Advocacy group Stand with Crypto Australia said the bill gives Australian crypto users "certainty and protections they've long deserved."

"But our advocacy doesn't stop here," said a Stand with Crypto Australia spokesperson. "Debanking remains a serious and unresolved problem for crypto users across Australia, and we'll be pushing the government to act."