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Australia Proposes Licensing Rules for Crypto and Tokenized Custody Platforms

Australia's Treasury introduces a draft proposal requiring crypto firms to hold financial service licenses under ASIC, with penalties for non-compliance reaching 10% of annual turnover.

Fact Check
The evidence strongly and consistently confirms the statement. Multiple official sources from the Australian Treasury and ASIC (Sources 1, 2, 6, 9) explicitly mention 'proposed licensing frameworks' for 'digital asset' and 'crypto' platforms. Furthermore, several sources (Sources 6, 7, 8, 12) directly state that these proposals cover 'custody only arrangements' and 'asset holding arrangements', which aligns with 'tokenized custody platforms'.
Summary

Australia's Treasury has revealed a draft proposal requiring digital asset platforms (DAP) and tokenized custody platforms (TCP) to secure financial services licenses under the Australian Securities and Investments Commission (ASIC). Non-compliance could result in penalties of up to 10% of annual turnover. Public consultation is open until October 24, 2025.

Terms & Concepts
  • Digital Asset Platform (DAP): A service that facilitates the trading or management of digital assets, now proposed to be regulated as a financial product in Australia.
  • Tokenized Custody Platform (TCP): A service that safeguards tokenized assets for customers, subject to proposed licensing under Australia's financial services law.
  • Australian Financial Services License (AFSL): A license issued by ASIC allowing entities to offer financial services in Australia, including the newly proposed coverage of certain crypto-related platforms.