The Albanese Government is taking the next step in developing a fit‑for‑purpose digital asset regime to help build a more dynamic and competitive economy in Australia.
Today we are opening consultation on draft legislation to regulate operators of platforms that hold digital assets like crypto on behalf of Australians.
This follows extensive engagement with industry stakeholders and targeted consultations to ensure the proposed framework is proportionate and reflects sector needs.
Digital assets represent significant opportunities for the Australian economy.
The draft legislation released today aims to amend existing law to bring digital asset platforms within the regulatory remit of Australian Financial Services law, to create more certainty for industry participants and consumers.
It will promote innovation in the industry by ensuring Australian consumers are adequately protected, giving them confidence to invest.
The draft legislation introduces two new financial products within the Corporations Act - digital asset platform and tokenised custody platform. This means the existing consumer protections and licensing rules will generally apply.
Providers of the new financial products will be required to hold an Australian Financial Services Licence - they will be subject to both the existing obligations of the license and targeted obligations.
These obligations include a requirement to provide their services efficiently, honestly and fairly, prohibitions on misleading and deceptive conduct and unfair contract terms, and a requirement provide greater transparency to the market and consumers.
Breaching these obligations will come with significant penalties - up to the greater of $16.5 million, three times the benefit obtained, or 10 per cent of annual turnover.
Smaller, low‑risk platforms - those holding less than $5,000 per customer and facilitating less than $10 million in transactions per year - will be exempt. This is consistent with the approach for other financial products like non‑cash payment facilities.
The draft legislation will not impose a new regulatory burden on digital asset issuers themselves, or on businesses that create or use digital assets for non‑financial purposes.
The aim is to mitigate key risks for consumers so the sector can safely and securely innovate and grow.
We are now seeking views from the digital asset sector, legal industry, financial services industry and the broader community.
Feedback on the exposure draft will be used to inform the development of the final bill, ensuring it addresses stakeholder needs for clarity.
The draft legislation and explanatory material can be found on the Treasury website. Submissions will remain open until 24 October 2025.
This will also deliver on a key pillar in the Government's March 2025 Statement on Developing an Innovative Australian Digital Asset Industry.
We want to seize these opportunities and encourage innovation at the same time as ensuring appropriate regulation so Australians can use and invest in digital assets safely and securely.
Quotes attributable to the Assistant Treasurer and Minister for Financial Services, Daniel Mulino
"This is a preliminary version of the legislation, and we are seeking stakeholder feedback on its effectiveness and clarity before proceeding further.
"The final legislation will introduce a new framework for digital asset businesses in Australia.
"It is about legitimising the good actors and shutting out the bad, giving businesses certainty and giving consumers confidence."
Quotes attributable to the Assistant Minister for Science, Technology and the Digital Economy, Andrew Charlton
"Australia can be a world leader in digital assets, which are an important part of Australia's digital economy.
"This draft legislation is the next step as the Albanese Government delivers a framework that creates certainty for industry and keeps Australians safe and secure."
