Australia Proposes New Draft Legislation to Regulate Crypto Exchanges and Platforms

Australia's draft legislation proposes tighter regulations for crypto exchanges, focusing on consumer protection and licensing.

Fridah Kangai
September 26, 2025
10:39 am

Fridah Kangai

Fridah Kangai is a dedicated crypto journalist with a sharp eye for market trends, blockchain innovation, and digital asset movements. She specializes in breaking down complex topics into clear, engaging stories for both seasoned investors and curious newcomers. With a passion for decentralization and a pulse on the ever-evolving crypto space, Fridah delivers timely, accurate, and insightful coverage. Her work bridges the gap between technology and everyday understanding in the world of cryptocurrency.

Australia proposes new crypto regulations for exchanges and platforms.
Draft legislation to introduce licensing requirements for crypto businesses.
Consumer protection focus in Australia’s new crypto regulatory framework.

Australia is moving to strengthen its oversight of the crypto industry with a new draft legislation. The Treasury has proposed that crypto exchanges and service providers obtain Australian financial services licenses. This aims to provide better regulatory control over digital assets and protect consumers.

The bill will modify the Corporations Act 2001 to add digital asset platforms (DAPs) and tokenized custody platforms (TCPs) to the financial products list. This would expose such platforms to the same regulation and licensing as traditional financial intermediaries.

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Focus on Consumer Protection and Licensing Framework

The new rules’ main emphasis is on regulating businesses that hold assets on behalf of their clients. Although the current laws already enforce crypto assets, the Treasury hopes to resolve the risks of recent failures in the field, which have resulted in massive losses incurred by consumers, including in Australia.

Cryptocurrency exchanges, brokerages, and platforms that trade tokenized physical assets would have to adhere to the same regulations as traditional financial services. The Australian Securities and Investments Commission (ASIC) would license and enforce these laws.

The new rules will align the crypto industry with the rest of the financial services industry. The draft legislation is being consulted until October 24, 2025. The proposed changes can be submitted to the stakeholders.

Since the government is becoming increasingly watchful, a new ASIC exemption for stablecoin intermediaries was recently implemented. This exemption will enable them to issue stablecoins without receiving further regulatory approvals. This action indicates that the government is trying to strike an innovation-regulation balance in the crypto industry.

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