Digital asset framework Bill introduced into parliament as the regulatory horizon appears

What you need to know

The long-awaited framework to regulate digital asset intermediaries is gathering steam. The Corporations Amendment (Digital Assets Framework) Bill 2025 (Bill) was introduced to the House on 26 November 2025 and was referred to the Senate Economics Legislation Committee (Committee) on 5 February 2026. The Committee's report will be due on 16 March 2026. The Bill proposes to introduce:

• two new financial products, a digital asset platform (DAP) and tokenised custody platform (TCP); and
• a tailored regulatory regime to bring intermediaries in the digital asset space within the regulatory perimeter.

If passed, many in the digital asset industry would be subject to tailored regulatory obligations which reflect the nature of the product offerings. This includes requirements for asset holding, settlement, disclosure in the form of a DAP/TCP Guide and platform rules (which are more akin to market rules).

What you need to do

We strongly suggest you review your activities and get your house in order to comply with current and evolving obligations.

Even before the laws are passed, ASIC's INFO 225 has recently clarified how our existing broad financial regulatory regime captures many providers of digital asset relate services. Further detail in relation to this is set out in our alert.

The no action letter provides a window for those who are already providing financial services, operating a CS facility or operating a market to comply with the financial regulatory framework. When combined, the regulatory guidance, exemptions, no action letter and Bill set out a pathway for the crypto asset industry to navigate Australia's evolving regulatory obligations.

If you would like help navigating the path forward, we would be delighted to speak with you.

The proposed reforms (in more detail)

The Corporations Amendment (Digital Assets Framework) Bill 2025 (Bill) proposes to introduce new financial products and a tailored regulatory regime for digital asset intermediaries.

Financial products

The proposed new financial products are:

• Digital Asset Platform (DAP): a facility where an operator possesses clients’ digital tokens, and records client interests in an account. This will include exchanges, brokers, custodians and some wallet providers.
• Tokenised Custody Platform (TCP): a facility where an operator holds underlying assets (digital or physical) and issues a single digital token per asset that confers a right to redeem or direct delivery of the underlying asset on a one-to-one basis. This is intended to capture platforms which facilitate tokenisation of underlying assets.

Neither of these will result in a crypto asset being a financial product if it is not already one under our current laws. Instead, both financial products relate to facilities provided by intermediaries.

Tailored obligations

The obligations imposed on operators of DAP and TCP are tailored, by requiring the following:

• a DAP or TCP to have platform rules with contractual effect between the operator and users and, if users can have direct dealings with one another, between each client under the platform;
• tailored disclosure in the form of a DAP or TCP Guide; and
• compliance with ASIC-set standards for holding assets, including possessing or safeguarding underlying assets and recordkeeping, reconciliation and reporting, and for transaction and settlement.

As proposed in the Exposure Draft, relief is proposed from certain fundraising and anti-hawking obligations where clients hold equitable interests “through the platform.”

Exemptions

The Bill also proposes various exemptions including:

From being a financial product

• wrapped tokens: in determining whether a digital token issued by means of a TCP is financial product, disregard the “redemption right” attached to a wrapped token if it is facilitated by decentralised software or public digital token infrastructure. However, where any rights in the underlying do not flow through to the token issued through the TCP, this exemption will not apply;
• public digital token infrastructure: open, permissionless software/hardware (or both) is excluded from being a financial product, meaning a person involved in its operation is not considered to be operating a clearing and settlement facility. This encompasses open-source, non-discretionary protocols, where there is a broad ability to participate, and no critical participant is involved; and
• custodial staking arrangement is not considered to be a separate financial product when offered through a licensed DAP/TCP (within defined parameters).
  

From financial services licensing

• low-value relief where the total value of transactions under the DAP is less than $10 million per annum, and less than $5,000 is held for each client, and underlying assets are not financial products; and
• incidental activity relief where a person only provides a financial service by arranging a person receive a DAP or TCP, or providing advice about the existence of a DAP or TCP.
  

From providing a financial service of making a market

• when minting and redeeming tokens under a TCP and clarifies when a custodial or depository service is provided and when the DAP/TCP regime applies.

In addition, if a crypto asset is a financial product and a platform constitutes a financial market or clearing and settlement facility, the existing regime still applies and an Australian markets license or CS facility license may be required. This is subject to a Ministerial Power to deem or exempt platform components to ensure the appropriate perimeter applies.

Commencement

The Senate Economics Legislation Committee is due to report on the Bill by 16 March. Once passed, the Bill will commence 12 months after Royal Assent, with a further six month transition period for licensing. A sector-wide no-action position from ASIC is expected to allow time for compliance with the new regime.

Differences from the Exposure Draft

The Bill follows the Exposure Draft in September. Whilst similar, it differs in the following key aspects:

• Digital token definition refined: “Digital token” is focused on factual control over an electronic record, being the ability to transfer the record, exclude others from doing so and to demonstrate this, and refines the definition of “possession” accordingly.
• DAP concept broadened: The DAP definition now expressly captures a wider range of arrangements to hold assets including possessing digital tokens 'for or on behalf of' another when acting as trustee or bailee, or under other arrangements where the operator deals with assets on the client's instruction. This expressly captures broker-style arrangements.
• Interaction with markets and clearing and settlement facility: The Bill clarifies the interaction with the markets and clearing/settlement regimes.
  

Other authors: Kurt Cheng, Solicitor

^{The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to. Readers should take legal advice before applying it to specific issues or transactions.}