Australia Introduces Bill to Enhance Consumer Protection in Crypto Platforms

Australia's government presents a new digital assets framework bill that aims to regulate crypto platforms, enhancing consumer protections and boosting confidence in the cryptocurrency market.

Key Takeaways

Legislation Introduction: On November 27, 2025, Australia introduced a bill to regulate digital asset platforms.
Licensing Requirement: The bill mandates that crypto and token custody platforms obtain Australian Financial Services Licences (AFSL).
Consumer Protection: The regulation seeks to safeguard consumers and adapt to rapid market developments.
Market Confidence: The legislation is designed to uphold transparency, fair dealings, and effective dispute resolution.
Exemptions: Less risky platforms handling small amounts of assets may be exempt from licensing.
Economic Growth Potential: Research suggests that improved digital finance infrastructure could save or generate up to $24 billion annually.

Australia bill targets crypto platforms to bolster consumer safeguards - 1

Introduction of the Digital Assets Framework

On November 27, 2025, Australia’s government introduced new legislation aimed at regulating digital asset platforms and enhancing consumer protection in the cryptocurrency sector. Official statements confirm the need for this initiative to keep up with the increasing use of digital assets by Australians, including cryptocurrencies, stablecoins, and tokenized versions of traditional investments like property and government bonds.

Addressing Gaps in Current Regulations

Currently, businesses can hold unlimited customer digital assets without the same safeguards found in traditional financial services, leaving investors exposed to risks highlighted by recent failures of global exchanges. The proposed Corporations Amendment (Digital Assets Framework) Bill 2025 introduces two new categories of regulated financial products: Digital Asset Platforms and Tokenized Custody Platforms.

To operate in these categories, platforms will need to obtain an AFSL, complying with requirements such as acting honestly, avoiding misleading information, maintaining strong governance, and fully disclosing asset storage details and clients' rights.

The government has determined that licensing will be proportionate to the specific risks associated with different digital asset infrastructures. For instance, platforms that manage less than $5,000 per customer and have annual processing volumes below $10 million will be exempt, similar to other types of financial products like non-cash payment facilities.

Encouraging Market Confidence and International Business

According to research conducted by the Digital Finance Cooperative Research Centre, the establishment of a robust digital finance system in Australia could result in savings or revenues of up to $24 billion a year. This legislation aims to strengthen market confidence through enforced transparency, fair dealing practices, and proper dispute resolution mechanisms.

The Albanese Government emphasizes that this framework is part of a broader economic modernization strategy. It aims to develop a consumer-protective regulatory system that fosters competition for local businesses in the digital asset space. Under the new bill, digital asset exchanges and custodians will be subject to the same licensing regulations that govern traditional financial service providers, creating a level playing field in the market.