Today marks a historic step for Australia’s digital asset industry. Treasury has released its long-awaited consultation paper and exposure draft legislation on the regulation and licensing of digital asset and tokenised custody platforms.
This is the culmination of years of consultation, beginning with the 2022 “Token Mapping” exercise and the 2023 proposal paper, and now delivers a comprehensive framework to bring exchanges, custodians, and service providers under the Australian Financial Services Licence (AFSL) regime.
At Cointree, we strongly support this regulatory clarity. As one of Australia’s longest-running exchanges, we believe that strong, fair, and transparent rules are essential for protecting consumers, fostering trust, and unlocking the next wave of digital asset innovation.
Why This Matters
The reforms aim to close regulatory gaps, strengthen consumer protections, and provide the certainty that exchanges, institutions, and investors have been calling for.
Under the draft legislation, businesses that hold digital assets on behalf of clients will need to be licensed, just like other custodians and financial service providers. This includes trading platforms, wallet providers, staking services, and tokenisation platforms.
For consumers, this means greater safeguards:
- Licensed platforms must meet minimum standards for custody and transaction integrity.
- ASIC will supervise compliance, with powers to enforce rules and make product intervention orders
- Clearer disclosure and dispute resolution obligations will apply, similar to existing protections in traditional financial markets.
Australia Aligns with Global Standards
The framework adopts the principle of “same activity, same risk, same regulation”, mirroring moves in the European Union (MiCA), United Kingdom, and United States.
This ensures that Australia remains competitive and attractive as a global hub for digital asset innovation, while avoiding the consumer harms seen in unregulated markets worldwide.
What’s Next
Treasury is now seeking feedback from industry, investors, and the public. Consultation will shape the final legislation, which will follow a 12-month transition period after passage.
As a licensed Australian exchange, Cointree supports this regulatory clarity. We believe that strong, fair, and transparent rules are essential for protecting consumers and unlocking the next wave of digital asset innovation.
👉 Find out more about the consultation and have your say here: Treasury Consultation on Digital Asset Platforms
