The Australian treasury revealed a new draft proposal for crypto firms in the country, requiring them to hold licenses and be treated as financial products.
The proposal would require crypto firms to hold financial service licenses, effectively bringing them under the wing of the country’s securities regulator, Australian Securities and Investments Commission (ASIC).
Digital asset platforms (DAPs) and tokenized custody platforms (TCPs) will fall under the same bracket as other financial intermediaries, and subject to the same licensing and consumer protection rules.
Daniel Mulino, assistant treasurer, revealed the draft legislation on Thursday. Mulino explained that the plan is to bring crypto under existing financial services rules.
“The final legislation will introduce a new framework for digital asset businesses in Australia. It will do so by extending existing financial services laws but in a targeted way,” Mulino said.
Kate Cooper, CEO of OKX Australia, said that the draft legislation is a clear indication that crypto is now fully embedded in the country’s financial system.
“The draft legislation is the clearest signal yet that crypto is no longer operating on the fringes and is now embedded in the financial system. The real measure of this reform will be shown by the compliance and enforcement that follows its implementation, ensuring that responsible, licensed operators aren’t undercut by unregulated players and that Australian consumers are protected,” Cooper said.
The treasury has opened the draft legislation for consultation. The consultation window is open until Oct. 24, 2025.
UPDATE (Sept. 25, 06:15 UTC): Adds comment from OKX Australia CEO on the draft legislation.
