Australia and UK Pass Landmark Crypto Regulation Bills

Australia passes the Digital Assets Framework Bill 2025 while the UK tightens AML rules for crypto firms, signaling a global shift toward stricter oversight.

The Australian Parliament has passed the ‘Corporations Amendment (Digital Assets Framework) Bill 2025’, establishing the nation’s first structured regulatory framework for digital assets. The law mandates that crypto exchanges and custodians obtain an Australian Financial Services Licence (AFSL), subjecting them to the same rigorous standards as traditional financial intermediaries.

This new framework introduces two primary categories: digital asset platforms that store cryptocurrency on behalf of clients, and tokenized custody platforms that hold real-world assets (RWA) and issue their digital equivalents.

Regulators are targeting the intermediaries managing client funds rather than the cryptocurrencies themselves. The objective is to mitigate risks such as the commingling of assets, fraud, and insolvency complications—weaknesses that triggered significant losses during previous market downturns.

Beyond oversight, the legislation carries a strategic economic goal. Industry estimates suggest Australia could generate up to 24 billion Australian dollars annually through digital assets and tokenization—a figure significantly higher than previous forecasts made in the absence of clear regulation.

UK Tightens Control Over Crypto and Cross-Border Flows

Simultaneously, the United Kingdom is strengthening its regulatory framework, though with a distinct focus on combating financial crime.

The government introduced amendments via the ‘Money Laundering and Terrorist Financing Regulations 2026,’ which update the 2017 regime and expand oversight of crypto businesses, correspondent banking relationships, and changes in corporate ownership.

These new rules, adopted under sanctions and anti-money laundering legislation, will be implemented in phases throughout 2026–2027, imposing higher requirements for risk management and transparency.

“These amendments reinforce a clear trend: higher governance requirements, earlier engagement with regulators, and deeper scrutiny of high-risk relationships—particularly in the crypto and cross-border context,” commented Ben Cooper, Head of Risk and Financial Crime.

Perspective: A Global Regulatory Race

Both initiatives highlight an accelerating global trend toward integrating the crypto sector into the traditional financial system.

Australia is betting on a model that encourages growth through clear rules and licensing, while the UK emphasizes control and the prevention of illicit activity. Despite these differing approaches, the trajectory is identical: stricter regulation, increased transparency, and deeper involvement from institutional players.

For companies, this shift means that adapting to the new regulatory reality is no longer an option, but a necessity.