Australia Mandates Licenses for Crypto Exchanges to Strengthen Oversight

Highlights:

• Australia requires digital asset platforms to obtain licenses, with fines of up to 10%.
• Exchanges must follow rules, act fairly and honestly, and avoid any deceptive practices.
• Tokens and non-financial digital assets remain mostly unregulated under the new framework rules.

Australia has introduced draft legislation requiring digital asset platforms to obtain formal licenses. Companies that fail to comply could face fines of up to 10% of their annual revenue. The Treasury released the draft bill on September 24. It aims to bring cryptocurrency exchanges and custody service providers under the Corporations Act. Platforms would need to hold an Australian Financial Services License and follow strict conduct standards.

Assistant Treasurer Daniel Mulino unveiled the new regulations during the Global Digital Assets Summit hosted by the Digital Economy Council of Australia. He emphasized that the government intends to foster growth in the digital asset sector while minimizing risks for investors. The Australian Securities and Investments Commission will be responsible for issuing the required licenses under the new framework. “It is about legitimising the good actors and shutting out the bad, giving businesses certainty and consumers confidence,” he said, according to the Australian Financial Review.

🇦🇺 Australia is moving to bring crypto under its 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝘀𝗲𝗿𝘃𝗶𝗰𝗲𝘀 𝗳𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸.
This means stronger rules, licenses, and consumer protection — putting crypto on the same level as traditional finance.

At GoPayments, compliance & transparency are in our… pic.twitter.com/PEevEqmqKL

— GOPayments.XYZ (@GOPaymentsXYZ) September 25, 2025

Australia Mandates Licenses for About 400 Crypto Exchanges with Compliance Rules

The new rules will impact around 400 crypto exchanges currently registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC). However, many of these platforms are thought to be inactive, according to a report in AFR. Under current regulations, these exchanges are only required to have anti-money laundering and know-your-customer policies in place.

Licensed exchanges must operate honestly, fairly, and efficiently. Companies that break the rules could face fines. The penalties can be A$16.5 million, three times the benefit gained, or 10% of yearly revenue. Smaller platforms are exempt if they handle less than A$5,000 per customer. They are also exempt if their annual transactions are below A$10 million.

The rules apply to the platforms themselves, not individual cryptocurrencies or tokens. Major exchanges such as BTC Markets and Independent Reserve have endorsed the proposed framework. Smaller platforms serving less than $5,000 per customer or handling under $10 million in yearly transactions will be exempt from licensing.

Tokens, Stablecoins, and Digital Asset Oversight

The legislation will update the Corporations Act to define “digital asset platform” and “tokenised custody platform.” Tokens that operate as financial products will continue to fall under existing regulations. The Australian Securities and Investments Commission plans to guide by November on which tokens will require an Australian Financial Services License.

The new rules do not impose extra requirements on digital asset creators or businesses using digital assets for non-financial purposes. Gaming tokens and non-fungible tokens (NFTs) used for artistic purposes will remain unregulated, according to the report.

Australia is also developing broader payment licensing rules to cover digital assets. These rules will include stablecoins, which are cryptocurrencies pegged to traditional currencies like the US dollar. The Australian Securities and Investments Commission has already granted licenses to two Australian dollar stablecoins, AUDM and AUDF. Coinbase has announced plans to list a third stablecoin, AUDD, under these new regulations. This move is part of Australia’s effort to provide clearer oversight and support for the growing digital asset market.