- Australia’s proposed crypto law, which adds “digital asset platform” and “tokenised custody platform” under the Corporations Act, has broad industry support.
- Industry feedback focuses on three issues: defining the scope and discretion of regulators, clarifying how local platforms can legally source offshore liquidity, and providing key mechanics currently deferred to future ASIC guidance.
- Though welcomed, the framework needs clearer rules on market access, custody obligations, and the division of powers between the Treasury and ASIC.
Australia’s crypto law has broad industry support but faces calls for sharper rules. Treasury closed consultations on Oct. 24 after submissions from major exchanges and firms.
The bill would add two product types to the Corporations Act: a “digital asset platform” and a “tokenised custody platform.” Both would require an Australian Financial Services License and registration with ASIC. The intent is a single perimeter for trading, custody, and settlement under financial-services law.
The Good, The Bad, And The Unknown
Basically, Industry feedback centers on three pressure points.
First and foremost, there are questions regarding the regulatory scope and discretion.
Swyftx asked the Treasury to simplify the text and cap open-ended powers. It wants a statement to guide interpretation and a clean split between what Treasury can designate and what ASIC can set as minimum standards. In other words, firms warn that broad discretion could force fundamental model changes without clear process.
Second, exchange executives say the draft does not explain how local platforms can legally source liquidity from offshore venues. Without clarity, spreads and depth could suffer, penalising Australian users.
And lastly but not least, multiple respondents welcomed the framework but noted that key mechanics are pushed to future guidance.
Related: Forte Tech Solutions Tokenises $2M in Australian Government Bonds – A First Under RBA’s Project Acacia
A Few Things To Iron Out
CloudTech Group executive Mandy Jiang labeled the framework a material step yet noted that key mechanics are pushed to future ASIC guidance. She highlighted a practical gap where licensed financial advisers would be barred from advising on crypto assets directly and limited to advising on regulated platforms, which could restrict consumer access to professional advice..
Some executives like the idea of bringing crypto under the financial-services umbrella, like Swyftx CEO Jason Titman, who told Cointelegraph that consumer protection and a level playing field are priorities. However, others questioned the value of adding multiple licenses without clear articulation of the consumer benefit or the specific risks being addressed.
Overall, timing is uncertain; some expect a bill to be introduced as early as March if bipartisan support holds. Others see end-2026 as more realistic given the volume of work needed to turn feedback into workable law and ASIC guidance.
The bottom line is that the framework is taking shape, but market access, custody obligations, and the split of powers between Treasury and ASIC need hard edges.
Related: Over 40 % of Aussie Gen Z & Millennials Regret Skipping Crypto — See It as Big 10-Year Miss
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