Australia's Department of Treasury published a statement setting out the Government’s digital asset reform agenda, centred on extending existing financial services laws to key parts of the sector to regulate digital asset platforms that custody consumer assets and to bring payment stablecoins into the payments licensing framework. The proposed Digital Asset Platforms (DAP) regime would focus on operators of online platforms that hold digital assets for consumers, including trading platforms, custody products and some brokerage models with underlying custody arrangements, including specified services provided by foreign entities and advice on using DAPs. The framework would largely exclude digital asset issuers, non-financial uses of digital assets, certain software development and infrastructure activities, and some assistance with acquiring non-financial digital assets, with small-scale and start-up platforms below relevant size thresholds exempt from full obligations but potentially subject to tailored compliance. Obligations would draw on the Australian Financial Services Licence (AFSL) regime, including general financial services obligations, plus additional requirements for safeguarding customer assets (aligned to client money and custodial standards), tokenised stored-value redemption, and tailored disclosures such as for assets without issuers and reserve composition. Payment stablecoins would be treated as a type of Stored-Value Facility under the Government’s Payments Licensing Reforms and be subject to substantially the same requirements as other SVFs, while certain stablecoins and wrapped tokens would not trigger a financial markets licence solely due to their trading, with transitional relief under consideration. The statement also links the reforms to work on de-banking, noting implementation of agreed recommendations from the Council of Financial Regulators’ work and engagement with the major banks. Draft legislation is intended to be released in 2025 for public consultation, with stakeholder feedback sought on commencement dates and transition methods, including potential licensing relief, and ASIC’s ongoing work on updates to Information Sheet 225 expected to inform the DAP and SVF reforms. Treasury also flagged a 2025 review of the Enhanced Regulatory Sandbox, consideration of feedback on the Crypto Asset Reporting Framework consultation, ongoing work with the Reserve Bank of Australia on central bank digital currency feasibility, tokenisation trials in wholesale markets with regulators and the Digital Finance Cooperative Research Centre, and continued monitoring of international approaches to decentralised finance.

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