Australia sets six-month deadline for crypto firms to obtain licenses

Australia passed the Corporations Amendment (Digital Assets Framework) Bill 2025 on April 1, requiring crypto exchanges and custody providers to obtain an Australian Financial Services Licence within six months. The law brings these firms under the oversight of the Australian Securities and Investments Commission and into the existing Corporations Act regime.

The framework creates two new categories: digital asset platforms that hold crypto for users, and tokenized custody platforms that hold real-world assets and issue corresponding digital tokens. Operators in both categories must meet core duties already applied to brokers and fund managers, including safeguarding client assets, providing standardized disclosures, avoiding misleading conduct, and maintaining dispute resolution and compensation systems.

The six-month transition period sets a deadline for platforms serving Australian customers to apply for authorization, update client agreements, strengthen asset segregation, and align custody, risk, and compliance controls with financial services rules. Firms that cannot meet the requirements may need to exit the market or partner with licensed providers. The rules apply nationwide under ASIC supervision.

Lawmakers focused on regulating intermediaries that control customer funds rather than the underlying digital assets. The approach is designed to limit risks such as commingling of client assets, insolvency exposures, and misuse of funds. By placing platforms in the AFSL regime, authorities can use established standards and enforcement tools on capital, conduct, and client protections, along with existing systems for complaints and compensation.

Industry participants pointed to clearer guardrails for investment. A Kraken spokesperson described the law as a “top-down signal” that Australia is serious about digital assets and noted that defined rules could support expansion by firms operating locally. Kate Cooper, CEO of OKX Australia and co-chair of the Digital Economy Council of Australia, said the bill “establishes a foundation for institutional participation and long-term capital allocation.” For more on the platform’s services, features, and user experience, see our OKX review.

Policymakers cited estimates that Australia could generate as much as A$24 billion a year from tokenized markets, payments, and digital assets under a clear licensing framework, compared with about A$1 billion by 2030 under the previous approach.

ASIC is expected to issue guidance to help platforms interpret the new categories and meet transition requirements. The six-month window is intended to give firms time to adjust systems, audit asset holdings, and refresh disclosures before full compliance takes effect.