The Corporations Amendment (Digital Assets Framework) Bill 2025 (Cth) (the Bill) marks a significant step in bridging digital asset intermediaries within Australia’s financial services regime.
On 8 April 2026, the Bill received Royal Assent, amending the Corporations Act 2001 (Cth) (Corporations Act). The Bill proposes key changes to cryptocurrency exchanges, custodians and certain wallet providers to operate under an Australian Financial Services Licence (AFSL), aligning them with traditional financial institutions.
The meaning of digital tokens
The concept of a ‘digital token’ is narrowed to an electronic record that one or more persons are capable of factually controlling (the ability to transfer, exclude others and demonstrate control). The definition also enables regulators to prescribe classes of electronic records.
This harmonises the existing financial product regime under the Corporations Act and ASIC Information Sheet 225, since an issued token may still be a security, managed investment scheme interest, derivative or non-cash payment facility.
For intermediaries, this clarification will play a crucial role in determining whether they are captured under the consolidated regime.
Applying financial services law to digital asset platforms and tokenised custody platforms
The Bill introduces two new mutually exclusive financial products:
- Digital Asset Platforms (DAPs): a facility under which an operator possesses digital tokens (the underlying assets) on behalf of a client. This includes exchanges, brokers and custodians.
- Tokenised Custody Platforms (TCPs): a facility under which an operator holds underlying assets and issues a 1:1 digital token representing a right to redeem or direct delivery of that asset.
In practice, operators of DAPs and TCPs will be required to hold an AFSL, with certain fundraising, product disclosure and anti-hawking obligations displaced so that investor protection is delivered through the DAP/TCP Guide, together with underlying asset disclosures.
Furthermore, the inclusion of subsection 761GE(1) in the Bill clarifies that an operator of a DAP or TCP may appoint an agent to do anything the operator is authorised to do in connection with the facility. The operator will remain liable for all actions taken by the agent.
Targeted exemptions for certain digital token arrangements
The Bill further adopts a proportionate approach by excluding:
- public digital token infrastructure (open-source and publicly accessible software or hardware)
- certain wrapped tokens (conferring a right to redeem or direct delivery of an underlying asset) and custodial staking arrangements (offered by a licensed DCP or TCP), and
- small-scale platforms (with annual transaction volumes under $10 million and less than $5,000 held per client).
Generally, non-custodial (where a provider does not possess or hold tokens for clients) and purely third-party technological service providers (e.g. multi-party computation arrangements) are not captured under the regime.
It should also be noted that stablecoins are primarily dealt with under payments licensing and stored-value facility reforms, with ASIC having issued separate relief instruments for stablecoins and wrapped tokens.
Enhanced powers for ASIC and the Minister to regulate DAPs and TCPs
ASIC and the Minister are also granted enhanced powers to clarify, extend and exempt parts of the regime (e.g. the meaning of financial markets and requirements for AFS licensees to comply with asset-holding, transactional and settlement standards), ensuring the regulatory perimeter can adapt to evolving digital asset models and risks.
Parallel AML/CTF reforms
The Bill operates concurrently with the Australian Transaction Reports and Analysis Centre’s new Virtual Asset Service Provider regime. With this in mind, digital asset intermediaries may face dual compliance obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) commencing from 1 July 2026.
Implications for you
The Digital Assets Framework established by the Bill formally commences on 9 April 2027, with a six-month transition period in place. If an AFSL application is lodged during that window, applicable obligations are effectively paused until ASIC makes a decision.
Despite compliance obligations being heightened, this new regulatory framework will enhance consumer protection and position Australia as a more credible and institution-friendly digital asset market. As such, digital asset intermediaries should remain proactive by assessing their regulatory exposure now and preparing for AFSL licensing and enhanced compliance obligations.
