Overview

• Two new categories — digital asset platforms and tokenized custody platforms — would be defined under the Corporations Act and regulated like other financial intermediaries.
• Providers that hold client assets or settle trades would need an Australian Financial Services Licence under ASIC oversight, with requirements for custody, conduct, disclosures and dispute resolution.
• The proposal sets targeted rules for staking, wrapped tokens and public token infrastructure, while excluding decentralized tokens not managed by intermediaries.
• Serious breaches could draw penalties of up to A$16.5 million, three times the benefit gained or 10% of annual turnover, with exemptions for operators under A$5,000 per customer and A$10 million in yearly transactions.
• Large exchanges welcomed clearer rules, lawyers cautioned about compliance burdens for smaller firms, and the government flagged transitional arrangements with ASIC after feedback is received.