On September 25, 2025, the Australian government introduced a draft law that for the first time sets out clear requirements for cryptocurrency exchanges and service providers. The proposal requires mandatory licensing of operators and imposes severe penalties on those who fail to comply.
Licensing and Penalties
Under the bill, major crypto exchanges and custodial platforms dealing with tokenized assets must obtain a financial services license and operate “honestly and fairly.”
Non-compliance could result in fines of up to 10% of annual revenue, 16.5 million AUD ($10.9 million), or three times the benefit gained from the violation — whichever is greater.
Industry Response
Speaking at the Digital Assets Regulation Summit, Deputy Treasurer Daniel Moulina emphasized that the bill aims to make the market more transparent and secure.
The initiative has already received support from major industry players:
- Coinbase said the rules would help drive economic growth and strengthen Australia’s global competitiveness.
- Kraken welcomed the draft, noting it as the outcome of “long consultations” between the sector and the government.
Exceptions for Small Operators
Smaller firms will be exempt from licensing if they hold less than 5,000 AUD ($3,298) per client and process under 10 million AUD ($6.6 million) in transactions annually.
What’s Next
Industry participants have until October 24, 2025 to submit comments on the bill. If passed, it will become one of the most significant steps toward establishing a comprehensive legal framework for digital assets in Australia.
Australia has been steadily tightening oversight of the crypto sector. In June, AUSTRAC capped crypto ATM transactions at $3,229 due to fraud and money laundering risks. In July, Block Earner launched the country’s first bitcoin-backed mortgage, drawing heightened regulatory attention.
