Regulation
|3 min ReadAustralia moves to license crypto platforms as financial services
Maya Chen
Senior Analyst
Published
Jan 16, 2026
Treasury plan brings DAPs and TCPs under licenses
Australia is drawing a line. If you run a crypto platform that holds customer assets, you will need a financial services license. That is the plan in draft law published by the Treasury. In a consultation opened Thursday, the government proposed amending the Corporations Act 2001 to capture digital asset platforms and tokenized custody platforms as new financial products.
Treating digital asset platforms, or DAPs, and tokenized custody platforms, or TCPs, as financial products would subject them to full licensing rules and consumer protections. The focus is on the intermediaries, not the tokens. “The focus of the framework is businesses that hold assets on behalf of clients, rather than on the digital assets themselves,” the Treasury said in a fact sheet. It added that crypto assets already fall within existing frameworks and are treated like other assets.
Failures have been costly. “Despite this existing legal and regulatory coverage, failures of digital asset intermediaries have caused major losses for consumers, including in Australia,” the Treasury said. The proposal would align DAPs and TCPs with rules for comparable financial intermediaries, such as investment portfolio operators. DAPs include crypto trading platforms and brokerages. TCPs include platforms for tokenized physical assets. It is a tidy move. It brings crypto service providers into the regime everybody knows.
ASIC to issue licenses as consultation opens
Assistant Treasurer Daniel Mulino framed the approach as targeted. In a Wednesday speech at the Digital Economy Council of Australia’s regulatory summit, Mulino said the draft would create a new framework for crypto businesses by extending existing financial services laws “but in a targeted way,” Capital Brief reported.
Under the proposal, the Australian Securities and Investments Commission will be the main regulator issuing licenses. Consultation on the draft is open until Oct. 24, 2025. That gives industry time to respond. It also sets a clear clock. The message is simple. If you hold client assets, you play by financial services rules.
Under current law, crypto exchanges in Australia must comply with anti-money laundering and know-your-customer rules, according to Australian Financial Review.
Stablecoin relief contrasts with tighter oversight
The Treasury’s move tightens oversight, but regulators have shown flexibility. Last week ASIC announced a class exemption allowing licensed intermediaries to distribute stablecoins without separate approvals, effectively easing licensing rules for stablecoin intermediaries. Both steps point to the same destination. Clear rules. Stronger protections. Room for innovation under supervision. A beautiful balance if they get it right.
Disclaimer: This document is intended for informational and entertainment purposes only. The views expressed in this document are not, and should not be taken as, investment advice or recommendations. Recipients should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance, which are not considered here, before investing. This document is not an offer, or the solicitation of an offer, to buy or sell any of the assets mentioned.