Australia Introduces New Cryptocurrency Exchange Regulation Bill, Introducing Concepts of Digital Asset Exchange and Tokenization Custody Platform

On November 27th, as per Decrypt's report, the Australian Treasury and the Department of Financial Services have presented the "2025 Corporations Act Amendment (Digital Assets Framework) Bill" to Parliament, thereby establishing the nation's first comprehensive regulatory framework for businesses that hold digital assets on behalf of clients. This bill introduces two new financial product categories: Digital Asset Exchange and Tokenization Custody Platform, both of which necessitate an Australian Financial Services License. The Digital Asset Exchange category encompasses operators who hold client crypto assets and provide facilities for transfers, trades, or staking; the Tokenization Custody Platform pertains to real-world assets such as bonds, real estate, and commodities. The platforms are required to comply with the Australian Securities and Investments Commission (ASIC) custody and settlement standards. Platforms where each client holds assets less than $5,000 and has an annual trading volume below $10 million are exempt from the full licensing requirement. The Australian government has stated that this bill has the potential to unlock $24 billion in annual productivity gains, and non-compliant companies will face fines in the millions of dollars.