Australia's Crypto Framework Aims to Unlock $24B Gains with Stricter Investor Safeguards

Australia has taken a decisive step toward regulating its crypto industry with the introduction of the Corporations Amendment (Digital Assets Framework) Bill 2025, a move aimed at unlocking $24 billion in annual productivity gains while imposing stringent safeguards for client assets. The legislation, unveiled by Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino, establishes a comprehensive framework for digital asset platforms and tokenized custody services, marking a significant evolution in the country's approach to crypto oversight. The bill introduces two new financial product categories under the Corporations Act: platforms that hold and transact crypto assets for clients, and tokenized custody platforms that manage real-world assets like property and commodities through redeemable tokens.

The regulatory overhaul responds to growing concerns about the risks associated with unregulated crypto custody and trading. Under the bill, platforms must obtain an Australian Financial Services Licence and adhere to ASIC's custody and settlement standards, which mandate "efficient, honest, and fair" operations. Operators with less than $10 million in transaction volume and serving clients with under $5,000 in assets are exempt from full licensing, allowing small-scale innovators to experiment without immediate regulatory burdens. James Volpe, a Web3 education expert, noted this approach balances innovation with risk management, calling it "early stage experimentation without forcing every proof of concept to go through the process of becoming licensed from day one".

The bill aligns with broader global shifts in tokenization and digital asset regulation. In the U.S., the GENIUS Act, enacted in July 2025, established a federal framework for stablecoins, while the SEC's "Project Crypto" initiative seeks to modernize digital-asset market structures. These developments underscore a growing consensus on the need for structured frameworks to support tokenized assets. Australia's new law positions the country to compete in this evolving landscape, particularly as platforms like GAIA-a U.S.-based tokenization marketplace launching in December gain traction in institutional real estate investments.

The regulatory push has sparked debate within the industry. While proponents argue the bill fosters trust and clarity, critics warn of potential barriers to innovation. The SEC's recent stance against crypto firms seeking exemptions to bypass traditional rules highlights the tension between regulatory oversight and industry flexibility. Australia's approach, however, emphasizes proportionality, with penalties for non-compliance and exemptions for low-risk operators designed to balance growth and security.

The bill's passage follows ASIC's updated guidance on custody and yield products, which treats tokens and stablecoins as financial products under existing law. This alignment with existing frameworks ensures a smoother transition for firms adapting to the new rules. As Australia moves to finalize the legislation, the global crypto industry will watch closely, with implications extending beyond compliance to broader market confidence in digital assets.