Australia’s Crypto Bill: From Rebels to Bankers, The Plot Twist You Didn’t See Coming!

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The Australian government, in its infinite wisdom, has decided to join the crypto party. They’ve introduced a shiny new bill, the Corporations Amendment (Digital Assets Framework) Bill 2025, that will force crypto platforms-yes, even the ones that make you feel like you’re gambling in a dystopian casino-to follow the same financial rules as your regular bank. Who knew? A digital revolution now shackled by the same old rules!

On Wednesday, Assistant Treasurer Daniel Mulino took the stage (probably with a mic drop) to announce that all crypto companies, from exchanges to custody providers, must now get themselves an Australian Financial Services License (AFSL). Apparently, if you want to trade in digital assets, you’ll need a real license-because apparently, the free-for-all was getting a bit too much for the government to ignore.

“Across the world, digital assets are reshaping finance,” Mulino boldly declared. “Australia must keep pace.” So, in a country where kangaroos rule the land and the sun is always setting somewhere, Australia is now taking its first step to make sure it’s not left behind in the crypto race. If they do it right, according to Mulino, they can create jobs, attract investment, and make their financial system look super innovative. 🦘💰

The government launched a consultation in September, giving the crypto industry a chance to whine and complain about the bill. And, surprise, surprise, the industry was “largely supportive”-because who doesn’t love regulations, right? But some did ask for clarity, because apparently the first draft wasn’t exactly written in plain English. I mean, who would have thought that the language of crypto could be so… opaque?

New Bill to Include Safeguards for Crypto Held for Clients

Mulino, the man of the hour, told the House that it’s currently possible for a company to hold an unlimited amount of client crypto with zero safeguards. And if you’re wondering, yes, this is where things get juicy, with scams like FTX lurking in the background. Mulino emphasized that the new bill would close those loopholes and make sure everyone playing in the crypto sandbox is treated equally. Finally, a level playing field where everyone can lose their money in a slightly more regulated way! 🤷‍♂️

Currently, crypto platforms that just allow you to trade don’t need to do much. They merely need to register with the Australian Transaction Reports and Analysis Centre (sounds thrilling, right?). There are currently 400 registered crypto exchanges, many of which are as active as a sloth on a lazy day. The new bill, however, would focus on platforms that hold crypto for customers, so don’t worry, the underlying tech (blockchain, tokens, and all that nerdy stuff) is still safe from scrutiny.

Crypto Bill Adds Two New License Types, Exempts Small Players

The bill amends the Corporations Act to create two new financial products: the “digital asset platform” and the “tokenized custody platform.” These will both require that good ol’ AFSL. The platforms will then be under the watchful eye of the Australian Securities and Investments Commission (ASIC). Until now, only the big boys-those selling derivatives-had to bother with such things. But now, it’s game on. If you’re dealing crypto, you’re going to need a license. Sorry, no free rides anymore!

Anyone advising on or dealing crypto will now be considered as providing a financial service, which, you guessed it, requires a license. Get ready for those licensing fees to stack up. 😎

Under the bill, platforms will also need to meet ASIC’s minimum standards for transactions, settlements, and holding customer assets. Plus, they’ll have to give clients a nice little guide explaining their services, fees, and risks-because who doesn’t love reading the fine print?

And for those small-scale crypto companies that were hoping to escape the licensing chaos? Mulino graciously announced that companies with under $6.5 million in transaction volume won’t need to worry. They’re off the hook-unless, of course, they start hitting the big time. Then, it’s back to the paperwork grind.

The bill also gives crypto platforms an 18-month grace period. So, for those businesses scrambling to comply, breathe easy-there’s time. But not too much time. The clock’s ticking. ⏰

The bill’s looking pretty likely to pass in the House, thanks to Prime Minister Albanese’s comfortable majority. Then, it’s off to the Senate, where it may require some arm-twisting to make sure it gets across the finish line. But hey, what’s a little more drama in the world of crypto regulation?

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2025-11-27 09:11