New rules, new confidence: What Australia’s draft crypto legislation means for you

The Albanese Government’s release of draft legislation to regulate digital asset platforms marks a significant and welcome milestone for Australia’s crypto sector. For years, the industry has operated in a regulatory grey zone, now, we’re finally seeing the outlines of a framework that balances innovation with consumer protection.

What’s in the draft?

The proposed legislation brings digital asset platforms and tokenised custody services under the scope of the Australian Financial Services Licence (AFSL) regime. That means platforms like BTC Markets will be subject to the same standards as traditional financial services providers. Think transparency, fair conduct, dispute resolution, and custody obligations.

Importantly, the legislation introduces two new categories under the Corporations Act:

• Digital Asset Platforms (DAPs)
• Tokenised Custody Platforms

These categories are designed to reflect the unique nature of crypto businesses, rather than forcing them into outdated financial frameworks.

What does it mean for our clients?

For our clients, this is a win. Regulation brings clarity, confidence, and protection. You’ll know that platforms operating in Australia are licensed, audited, and held to high standards. It means your assets are better safeguarded, and your rights as a consumer are more clearly defined.

It will also provide reassurance to the many hundreds of thousands of digital asset investors in Australia. Their needs will be protected at home under the established AFSL framework. For international investors, it’s a sign that Australia is catching up to the rest of the world. The country is open for business.

The draft also includes threshold exemptions, platforms holding less than AU$5,000 per individual or AU$10 million in aggregate won’t need a licence. This ensures that smaller, low-risk platforms aren’t overburdened, while larger players are held accountable.

What does it mean for BTC Markets?

For us, it’s an opportunity to lead. BTC Markets has long advocated for proportionate, fit-for-purpose regulation. We welcome the draft legislation and look forward to contributing to the consultation process. Our goal is to help shape a framework that supports innovation while protecting Australians.

We’re already operating with many of the standards outlined in the draft, secure custody, transparent operations, and a strong compliance culture. This legislation formalises those expectations and gives us a clearer roadmap for future growth.

What does it mean for the crypto industry?

This is Australia’s chance to step up on the global stage. The draft aligns with international best practice, drawing inspiration from frameworks in the EU, UK, Singapore, and Canada. It’s a signal that Australia is serious about building a competitive, dynamic digital economy.

The legislation also addresses key pain points like debanking, staking, and wrapped tokens, offering tailored rules that reflect the realities of crypto markets. It’s flexible enough to evolve with technology, and robust enough to prevent the kind of collapses we’ve seen globally.

This draft legislation is a welcome step forward. It gives our clients more confidence, our business more certainty, and our industry a stronger foundation. BTC Markets is ready to engage in the consultation process and help build a regulatory framework that empowers Australians to thrive in the digital asset economy.

If you have any questions, our support team is here to help.

Sources:

https://treasury.gov.au/sites/default/files/2025-03/p2025-628504-s.pdf 

https://www.afr.com/companies/financial-services/crypto-exchanges-to-be-required-to-hold-financial-services-licences-20250924-p5mxqd 

Disclaimer: The information provided on this page is issued by BTC Markets Pty Ltd (BTC Markets, we, us, our). The information is general only and is not intended to constitute an opinion or recommendation with respect to its contents. Past performance is not a reliable indicator of future performance. Any reference to past performance is intended to be for general illustrative purposes only. The information cannot be relied upon for any purposes and is not intended to be a substitute for professional advice.

The information does not purport to be complete, accurate or contain all of the information that a person may require to make a decision. It may also contain forward looking statements, which are subject to known and unknown risks, uncertainties, and other factors. We recommend you obtain professional advice before making any decision with respect to the matters discussed in this document. To the maximum extent permitted by law, BTC Markets will have no liability for any loss or liability of any kind: (i) arising in respect of the information contained (or not contained) on this page; or (ii) arising from a person relying on any information or statement contained on this page. The information provided is only intended for recipients in Australia. This information cannot be reproduced without our prior written permission.