Australia is moving to tighten oversight of the digital-asset sector with a sweeping legislative package designed to bring cryptocurrency platforms, tokenised-asset services and custodians under the country’s established financial-services laws.

The initiative forms part of a broader effort to modernise the national financial system and provide the regulatory certainty needed to attract long-term investment in digital markets.

The proposed reforms would require major digital-asset platforms to obtain a licence under the Australian Securities and Investments Commission, placing them under the same conduct, disclosure and consumer-protection obligations that govern banks and other traditional financial institutions.

The framework introduces formal categories for digital-asset platform operators and tokenised-custody providers, ensuring that businesses responsible for holding or facilitating customer assets meet strict security, transparency and settlement standards.

Smaller operators would receive targeted exemptions, with platforms handling limited customer funds or low annual transaction volumes spared the full licensing burden.

Officials argue this approach balances robust consumer protections with space for early-stage innovation, allowing small-scale businesses to develop without disproportionate regulatory pressure.

Regulators have already begun preparing the sector for transition.

Updated guidance clarifies how existing financial-services rules apply to stablecoins, tokenised products and other emerging digital-asset models, offering interim certainty while parliament considers the new bill.

Industry responses have broadly welcomed the reforms, with many firms noting that clear rules could finally open the door to institutional participation and more ambitious use of tokenisation technologies.

The government frames the initiative as a crucial step toward building a secure digital-asset ecosystem.

By moving the industry out of regulatory ambiguity and into a structured licensing regime, Australia aims to position itself as a stable and competitive hub for digital finance in the Asia-Pacific region.