Australia's Department of the Treasury released exposure draft legislation and explanatory materials proposing a tailored application of Australia’s financial services laws to digital asset platforms and tokenised custody platforms, and invited feedback on how clearly the materials explain the policy intent and operation of the new regime. The draft would define core concepts including “digital token”, “digital asset platform” and “tokenised custody platform”, and generally treat in-scope platforms as financial products (where they are not managed investment schemes), making operators subject to Australian financial services (AFS) licensing, conduct obligations and ASIC supervision. It also introduces platform-specific requirements, including ASIC-made minimum standards for asset holding and for transaction and settlement functions, mandatory platform rules, and tailored retail disclosure via a DAP/TCP Guide in place of a product disclosure statement, alongside design and distribution obligations. The framework includes targeted exemptions and carve-outs, notably a low-value AFS licensing exemption for certain digital asset platform issuers where total transaction market value across platforms stays below AUD 10 million on a rolling 12-month basis (subject to additional conditions including a AUD 5,000 per-client entry value cap and notice to ASIC), as well as relief for some incidental business use cases, certain fundraising and anti-hawking settings, specified treatment of “wrapped” tokens, and exclusions for “public digital token infrastructure” and for certain intermediated staking arrangements offered through a licensed platform. Ministerial powers would allow specified digital asset platforms to be deemed or exempted as financial markets or clearing and settlement facilities in defined circumstances, and enable prohibitions on specified conduct involving financial products through particular platforms. Commencement is set for 12 months after Royal Assent, with transitional arrangements that delay application of certain financial-services-connected obligations for unlicensed providers for an initial six-month period, and potentially up to 12 months after commencement where a licence or variation application is made within that first period. The explanatory materials include test scenarios and specifically seek feedback on the explanatory approach and readability.
Department of Treasury (Australia) 2025-09-25
Australia's Department of the Treasury consults on draft law to bring digital asset and tokenised custody platforms into the financial services regime
Australia's Treasury proposed draft legislation applying financial services laws to digital asset and tokenised custody platforms, treating them as financial products under Australian licensing and ASIC supervision. It includes platform-specific requirements, exemptions for low-value transactions, and ministerial powers to classify platforms as financial markets or clearing facilities.