Australia regulates digital assets. What it means and what comes next

Australia’s financial services sector has crossed an important threshold.

With Federal Parliament this month passing the Corporations Amendment (Digital Assets Framework) Bill 2025, digital assets have formally moved from a policy debate into a regulated part of the financial system.

This policy marks the pivotal point where digital assets begin to sit alongside traditional financial markets, as well as our global peers like Europe and the United States who have already advanced similar regulatory frameworks.

Honner has taken a closer look at what this significant shift in the regulatory landscape means for financial services firms. In a series of articles, we explore the issue from three angles:

• Part 1 outlines what has actually changed with the legislation and why it matters
• Part 2 examines the communications implications for financial services firms
• Part 3 looks ahead to the next wave of debate including stablecoins, tokenisation and the role of digital assets in financial market infrastructure

Five key takeaways

1. Australia has passed its first dedicated digital assets legislation – Federal Parliament has passed the Corporations Amendment (Digital Assets Framework) Bill 2025, marking the first time Australia has implemented a dedicated legislative framework for the digital assets sector.
2. Crypto exchanges and custody providers will require an AFSL – Digital asset platforms holding customer assets will be brought into the Australian Financial Services Licence (AFSL) regime, aligning them with existing financial market operators. This will come into effect from April 2027.
3. Institutional and adviser participation is expected to increase – Regulatory clarity, consumer protections and licensing are expected to unlock broader participation from banks, super funds, family offices and financial advisers.
4. A staged transition gives industry time to comply – The law will not take effect immediately, with clear transition periods built in to allow existing businesses to adjust before full enforcement begins.
5. The framework brings crypto alongside other asset classes – By embedding digital assets within Australia’s core financial services laws, regulators are supporting the sector to grow responsibly and sustainably, with a focus on consumer protection.

What this means for the digital assets industry in Australia

After years of consultation and debate, Federal Parliament has this month passed Australia’s first comprehensive legislation dedicated to digital assets, fundamentally reshaping how the sector is regulated.

Rather than focusing on banning or restricting digital assets, the framework integrates crypto platforms into Australia’s existing financial services system. Policymakers have deliberately targeted intermediaries, such as exchanges and custody providers, acknowledging that most consumer risk arises from how assets are held and managed, not from the underlying technology itself.

Why institutional investors and advisers have been waiting for this

One of the clearest industry shifts from the new regulation is its potential to unlock greater investment from institutional investors and financial advisers. Until now, many superannuation funds and licensed financial advisers have remained cautious to allocate capital due to regulatory ambiguity and uneven standards across crypto platforms.

By requiring digital asset platforms to hold an AFSL, the legislation introduces familiar safeguards: asset segregation, governance requirements, capital standards, disclosures and access to dispute resolution mechanisms. These are the same guardrails institutional investors and advisers rely on across traditional financial markets.

For financial advisers, the framework reduces legal and compliance risk when assessing platform exposure, custody arrangements and counterparty risk. This shift is already visible in the growing use of regulated structures such as crypto ETFs.

For institutions, it improves the ability to partner with, invest in, or build digital asset offerings using licensed, regulated infrastructure. Over time, this opens the door for digital assets to be considered within mainstream portfolios, including superannuation funds and asset consultants.

At the same time, policy settings such as Your Future, Your Super are pushing a more disciplined approach to portfolio construction across the super sector. The framework does not favour one asset class over another, but it does lift the level of scrutiny – meaning any exposure to newer areas such as digital assets needs to be backed by a clear case on member outcomes, risk and governance.

Over the next 12 months, crypto firms should closely monitor how financial advisers and institutional investors are engaging with crypto ahead of the new licensing frameworks and consider opportunities to debate how this narrative is playing out and what more can be done to support it.

What the transition period looks like for businesses

Importantly, the legislation has been designed to avoid market disruption. While Parliament has passed the Bill, its obligations do not apply immediately. The legislation will come into effect in April 2027, with a six-month transition period also provided for businesses to meet the requirements.

In recent months, ASIC has seen many businesses get ahead of the requirement by applying for an AFSL in advance to avoid the queues.

That early engagement suggests the industry is moving to adapt and taking steps to embrace digital assets as less of a fringe consideration and more of a mainstream regulatory and commercial consideration.

This regulatory announcement makes it clear that crypto is increasing its role and presence within the Australian financial services industry and that this is only the start of the journey.

For digital assets businesses looking to build a clearer market identity, Honner can develop a tailored communications strategy playbook across messaging, thought leadership, media, events and leadership visibility – helping build recognition with the audiences that matter in Australia. To discuss, contact Jared Wright, Account Director at Honner jared@honner.com.au