Digital asset platforms and tokenised custody platforms to require AFSL under new bill
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The news: The Albanese government has introduced new legislation that will require digital asset platforms and tokenised custody platforms to hold an Australian Financial Services Licence (AFSL).
The context: The legislation, the Corporations Amendment (Digital Assets Framework) Bill 2025 will ensure digital asset platforms and tokenised custody platforms are subject to obligations including:
- The requirement to act efficiently, honestly and fairly; prohibitions on misleading and deceptive conduct and unfair contract terms;
- A requirement to give customers clear information about how assets are held and what their rights are;
- Maintaining strong governance and risk controls; and
- Providing accessible dispute resolution and compensation if things go wrong.
However, the obligations will be tailored to reflect the structure and risk profile of these platforms despite being regulated under the existing AFSL framework.
Platforms that hold less than $5,000 per customer and facilitate less than $10 million in transactions per year will be exempt which the government said was consistent with the approach for other financial products like non-cash payment facilities.
What they said: "These reforms strengthen consumer protections and modernise Australia’s regulatory system," Treasurer Jim Chalmers and Assistant Treasurer Daniel Mulino said in a joint statement.
"They will boost confidence, attract investment and support jobs by providing trusted rules for emerging digital markets.
"Labor’s economic plan is all about modernising Australia’s economy to boost wages and growth and increase living standards and this legislation is an important part of that strategy."
The source: Treasurer Jim Chalmers and Assistant Treasurer Daniel Mulino media release
