Australia Passes First Crypto Law, Exchanges Face New Rules
Australia passes its first crypto law. Exchanges and custodians now face licensing rules under the new Digital Assets Framework Bill 2025.
Australia has taken a historic step in crypto regulation. The Corporations Amendment (Digital Assets Framework) Bill 2025 cleared the Senate on April 1, 2026.
It now heads for royal assent after passing both houses of Parliament. The law marks the country’s first dedicated legal framework for digital assets. Crypto exchanges and custody providers now operate under a new set of rules.
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Australia Central Bank Backs Tokenization With $24B Efficiency Potential
Australia’s Crypto Law: What the Bill Actually Does
For the first time, Australian law formally defines digital tokens.
The bill creates structured rules for digital asset platforms, including exchanges and custodians. It also introduces a framework covering real-world asset tokenization through tokenized custody platforms.
Beyond that, the bill hands ASIC and the Treasury Minister direct powers to regulate these platforms.
Ash Crypto, a crypto commentator on X, described the development as bullish.
BULLISH:
AUSTRALIA JUST PASSED ITS FIRST CRYPTO LAW
Exchanges and custody providers must now obtain AFS licenses with new framework introduces regulated crypto categories and stronger protections against misuse of customer funds. pic.twitter.com/md4Ld9VoZL
— Ash Crypto (@AshCrypto) April 1, 2026
He noted that the new framework introduces regulated crypto categories alongside stronger protections against misuse of customer funds. The post drew significant attention from the crypto community following the Senate vote.
Before this law, Australia relied on older financial services laws and AML rules. Those frameworks were not designed with crypto in mind. This bill fills that gap directly.
Exchanges and Custodians Must Now Get Licensed
Crypto exchanges and custody providers must obtain Australian Financial Services Licences (AFSL) under the new rules.
The bill creates specific AFSL categories for digital asset platforms. This is a significant shift from the previous, less tailored approach.
Platforms handling under A$10 million in volume qualify for exemptions. This provision protects smaller operators from being immediately overwhelmed by compliance costs.
Larger platforms, however, face full licensing requirements without exception.
The bill also introduces strict custody safeguards. Platforms must follow rules that prevent the misuse of customer funds.
Reporting standards and platform-specific disclosures also form part of the new obligations.
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Bitcoin and Ethereum Stay Outside Financial Product Rules
Not everything falls under the new regulatory umbrella.
Bitcoin and Ethereum are not classified as financial products under this law. This distinction is important for how those assets get treated legally and commercially in Australia.
Platforms have roughly 18 months to achieve full compliance. That window gives exchanges and custodians time to align their operations with the new licensing standards.
Regulators expect platforms to begin preparing immediately, even with the grace period in place.
The passing of this bill puts Australia alongside other major economies that have moved to formalize crypto oversight. It signals a clear direction for the industry going forward.
The post Australia Passes First Crypto Law, Exchanges Face New Rules appeared first on Live Bitcoin News.
Filed under: Bitcoin - @ April 1, 2026 4:30 pm