Australia Outlines Licensing Push for Crypto Service Providers
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Australia is reshaping its approach to digital assets with new draft legislation aimed at bringing exchanges and custody platforms under the same rules as traditional finance.
The Treasury announced that the proposal would fold digital asset platforms and tokenized custody services into the Corporations Act 2001, effectively classifying them as financial products.
That shift would mean firms must hold an Australian financial services license, meeting the same obligations as portfolio managers and other intermediaries.
Officials explained that the move is not about regulating crypto assets themselves, but about holding accountable the businesses that manage them. High-profile failures of exchanges, some impacting Australian users, highlighted the need for stronger protections.
Under the draft, crypto trading venues, brokerages, and services managing tokenized physical assets would all face stricter oversight. By treating them like other licensed operators, regulators hope to reduce consumer risks while maintaining consistency across markets.
Public feedback on the proposal has opened, with policymakers stressing that the reforms are designed to close gaps without reinventing the existing regulatory framework.
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