Australia enters the crypto regulation era with first Digital Assets Framework law

Australia has passed its first crypto-specific legislation, formally bringing digital asset firms under a licensing regime. Parliament approved the Digital Assets Framework Bill on April 1, ending years of regulatory uncertainty. Under the new law, crypto exchanges and custody providers that hold assets on behalf of customers must obtain an Australian Financial Services Licence (AFSL) from the Australian Securities and Investments Commission (ASIC). Obligations include safeguarding client assets, providing clear disclosures and maintaining dispute-resolution systems. The rules also extend to tokenised custody platforms that hold real-world assets and issue digital tokens. The framework is designed to address risks such as commingling of customer funds and insolvency issues that contributed to past crypto collapses. The legislation focuses on firms handling customer funds rather than regulating crypto itself.