Australia Creates Equal Conditions: Crypto Platforms Now Subject to Regulations Similar to Banks

Australia has introduced a sweeping regulatory system for digital asset platforms, signaling a major change in how the country governs cryptocurrencies. The Treasury published draft rules on September 25, 2025, requiring all crypto exchanges and custodians to secure an Australian Financial Services Licence (AFSL), thereby bringing them in line with conventional financial firms under the Corporations Act Australia proposes tough crypto rules: digital asset platforms face 10% penalties [ 1 ]. This initiative is designed to strengthen consumer safeguards, curb financial crimes, and create a unified regulatory landscape for the industry. Under the proposal, violations could result in penalties of up to 10% of yearly revenue, with a minimum fine of A$16.5 million (US$10.9 million) or three times the benefit obtained from non-compliance Australia proposes tough crypto rules: digital asset platforms face 10% penalties [ 1 ]. Platforms handling less than A$5,000 per client and under A$10 million in annual transactions may be exempt Australia proposes tough crypto rules: digital asset platforms face 10% penalties [ 1 ].

The new rules establish two categories—digital asset platforms and tokenised custody platforms—to address issues like conflicts of interest and asset safeguarding Australia’s ASIC Proposes Regulatory Framework for Crypto Platforms [ 2 ]. These organizations must comply with licensing and regulatory requirements similar to those for traditional finance, including secure asset storage, dispute resolution, and clear settlement processes Australia proposes tough crypto rules: digital asset platforms face 10% penalties [ 1 ]. Oversight will be handled by the Australian Securities and Investments Commission (ASIC), while AUSTRAC will be responsible for anti-money laundering (AML) and counter-terrorism financing (CTF) measures. The Treasury noted that crypto assets are already subject to existing regulations but stressed the necessity for tighter controls to manage new risks Australia’s ASIC Proposes Regulatory Framework for Crypto Platforms [ 2 ].

Industry participants, including major global exchanges like

and Kraken, have recognized the value of clear regulatory guidelines. John O’Loghlen, Coinbase’s Australian director, remarked that regulation is vital for economic progress and competitiveness, while Kraken’s Jonathon Miller highlighted the constructive dialogue between regulators and industry representatives Australia proposes tough crypto rules: digital asset platforms face 10% penalties [ 1 ]. The draft legislation also incorporates insights from recent regulatory actions, such as the mandatory external audit imposed on Binance Australia over AML concerns Australia proposes tough crypto rules: digital asset platforms face 10% penalties [ 1 ]. Authorities have emphasized that these changes will boost investor trust and bring Australia in line with international standards, including the EU’s Markets in Crypto-Assets (MiCA) rules and Hong Kong’s licensing framework for stablecoins Australia’s ASIC Proposes Regulatory Framework for Crypto Platforms [ 2 ].

The draft legislation is open for public comment until October 24, 2025, giving stakeholders an opportunity to provide input before the rules are finalized Australia proposes tough crypto rules: digital asset platforms face 10% penalties [ 1 ]. If enacted, this law would represent one of the most substantial regulatory changes for Australia’s crypto industry, introducing a licensing system with strict penalties for violations. The Treasury has stated that the framework is designed to balance innovation with stability, ensuring digital asset platforms adhere to the same standards as established financial institutions Australia proposes tough crypto rules: digital asset platforms face 10% penalties [ 1 ].

On the global stage, Australia’s regulatory direction is consistent with trends in places like Singapore and the EU, which are integrating crypto into existing financial regulations while offering exemptions for smaller players. The reforms are also in step with the OECD’s Crypto Asset Reporting Framework (CARF), which Australia intends to implement by 2027 to improve tax transparency Australia’s Draft Crypto Regulation Legislation: What It Means for Exchanges, VASPs and the Future of Digital Assets [ 4 ]. Experts suggest that these measures could help Australia become a leading center for crypto innovation in the Asia-Pacific, as long as regulatory requirements remain balanced and fair.