In December 2024, the Australian Securities and Investments Commission (ASIC) released a proposed framework for regulating digital asset platforms in Australia. These platforms hold billions of dollars of digital assets for Australians and provide financial services such as trading and staking. 

In fact, recent data from the 2025 Independent Reserve Cryptocurrency Index (IRCI) indicates that approximately 31-32.5% of Australians have owned cryptocurrency. What’s more, a significant portion of Australian crypto investors report holding and actively investing in digital assets. The 2025 IRCI found that 20.5% of Australian crypto investors are investing $500 or more each month.

The framework aims to integrate digital asset platforms into the financial services regulatory landscape, ensuring consistent oversight while supporting responsible innovation. Ultimately, the goal is to create a clear set of rules that promote growth and competition, while mitigating risk to consumers and investors. 

So, what are digital asset platforms and why are lawmakers regulating them? More importantly, what do these changes mean for businesses like yours? Here’s everything you need to know. 

What are Digital Asset Platforms?

Australians’ interest in digital and crypto assets is expanding fast, reshaping the finance industry, investments and global trade. Let’s cover some key terms that define this space: 

  • Digital tokens are units or records that represent value, ownership or access rights to digital assets. These include cryptocurrency tokens (like Bitcoin) and non-fungible tokens (i.e. for art and in-game items). 
  • Asset tokenisation converts physical or financial assets — like real estate or stocks — into digital tokens. These tokens get traded on blockchain platforms. The process of tokenisation enables fractional ownership of virtual assets and can increase liquidity.
  • Digital assets are the digital tokens and platform entitlements they grant their holder. They may include:
    • Cryptocurrency: Bitcoin (BTC) and Ethereum (ETH) are popular examples of cryptocurrencies, bought, sold and traded on exchanges like Swyftx and CoinSpot.
    • Stablecoins: Stablecoins like AUDD and USDC maintain a steady value by being pegged to real-world assets like the Australian dollar or U.S. dollar.
    • Security tokens: These tokens are legally classified as securities, and represent partial ownership in a business.
    • Central Bank Digital Currency (CBDCs): A government-backed digital currency that makes transactions faster and more secure while keeping the stability of traditional money.
  • Digital asset platforms are online marketplaces or exchanges where users can buy, sell, trade and store digital assets. They are also known as crypto exchanges or brokers. 

Digital asset platforms hold and transact massive value for Australians. Industry reports indicate that the revenue of cryptocurrency exchanges in Australia is growing, reaching an estimated $470.2 million AUD in 2024-25. Increased engagement exposes investors to significant risk. When a digital asset platform collapses locally or globally, consumers may lose their assets or have to navigate complex insolvency proceedings, delaying access to their funds. 

The regulatory reform aims to balance three pillars within the space — consumer protection, market integrity and financial innovation — by standardising operational rules, thereby increasing trust and transparency. 

What are the Digital Asset Platform Regulations?

The proposed regulations require digital asset platforms to obtain an Australian Financial Services Licence (AFSL) from ASIC. Additional obligations will also apply to platforms offering “financialised functions” such as token trading, to bring them under market regulations. 

The regulatory framework is designed to align with existing financial services law, reinforcing the “same activity, same risk and same regulatory outcome” principle. This concept is also supported by international regulators like the International Organisation of Securities and Commissions (IOSCO).

ASIC is actively shaping these regulations, supporting the Australian Treasury in policy development and preparing for future enforcement. Regulatory oversight will be shared among three key regulators, including:

  • ASIC: Ensuring compliance with the Corporations Act.
  • The Australian Government: Leading policy and legislative development.
  • IOSCO: Providing international regulatory recommendations.

What are the Potential Obligations for Firms?

If the proposed regulations are actioned, digital asset platform providers will need to:

  • Obtain an AFSL and uphold licensing obligations, such as maintaining adequate financial resources, providing fair disclosures and acting efficiently, honestly and fairly.
  • Comply with existing and new custodial and virtual asset securities laws — such as ASIC Corporations (Financial Requirements for Custodial or Depository Service Providers) Instrument 2023/648. This includes firms that have an asset-holding arrangement with clients.
  • Adopt governance frameworks to ensure transparency in token trading and financial services.
  • Assess whether crypto-assets qualify as financial products and, if so, ensure compliance with financial product regulations, including licensing and disclosure requirements.
  • Determine if intermediary services require an AFS licence, particularly for activities such as providing financial product advice and dealing or offering investment products linked to crypto-assets.
  • Ensure you meet market licensing requirements if running a crypto-asset exchange or trading platform, including any necessary approvals for clearing and settlement.
  • Review custody and wallet services to make sure you have the right authorisations for holding tokens that are considered financial products.

Current AFSL holders will need to review their lending processes, policies and compliance mechanisms in light of the revisions to Regulatory Guide 133 Funds management and custodial services: Holding assets (RG 133) — which we will discuss further below. AFSL holders should consult with legal or compliance experts to ensure they fully understand and implement the necessary adjustments.

What are ASIC’s Latest RG 133 Updates and Consultations?

To understand how these changes may impact you, let’s first look at the two primary ways an entity can be subject to RG 133. 

  1. Directly: Where RG 133 standards are directly imposed, given a financial institution’s regulatory status and activities in, or connected to, Australia. 
  2. Indirectly: Where a financial institution’s client is subject to RG 133, and must therefore impose standards on the entity. 

To help financial service providers understand and prepare for changes, ASIC recently published a media release detailing the RG 133 update, covering funds management and custodial services. In short, the updates include:

  • Guidance on Holding Digital Assets: A new Section F introduces best practices and expected measures in relation to holding virtual assets, such as:
    • Specialist expertise and infrastructure.
    • Robust cyber and physical security practices. 
    • On-chain segregation of assets.
    • Private key management. 
    • Transaction signing and instructions processes.
    • Compensation arrangements.
    • Cybersecurity verification.
    • Independent audit.
  • Updated Legislative Instruments: Updated references to relevant and revised legislative instruments, including those that impose financial requirements. 
  • Refined Regulatory Language: Outdated or obsolete transitional clauses were removed.

RG 133 does not define “crypto-asset” or clarify ASIC’s exact approach to distinguishing assets across different contexts, however, it does provide additional guidance for businesses that may be impacted. Relevant AFSL holders and entities must evaluate how RG 133 applies to their business model and seek advice as needed. 

At the same time, ASIC also distributed a Consultation Paper 381 Updates to INFO 255: Digital Assets: Financial Products and Services (CP 381) overviewing proposed updates to Information Sheet 255 Crypto Assets (INFO 255). These releases provide digital asset businesses with guidance about ASIC’s delineation of how the Corporations Act 2001 applies to crypto and digital assets. They also expand on proposals for licensing entities that offer financial services related to crypto and digital assets classified as financial products

What This Means for the Industry

New ASIC regulations signal a transition for digital asset service providers in Australia. Firms must seek appropriate ASIC licensing and align their operations with ASIC’s guidance as they navigate the future of digital asset transactions. Those failing to meet standards risk enforcement actions from ASIC, where misconduct is detected.

Laying the Groundwork for Asset Compliance

To determine where you fit within these regulatory changes, it’s a good idea to conduct a compliance review that assesses how digital assets act within your business. This can identify compliance gaps that need addressing to ensure preparation for digital asset licensing, governance and documentation requirements.

Amidst the regulatory shifts, staying informed is just as important as being prepared. Digital solutions like MIntegrity’s RegsWeb help you access and utilise real-time information on regulatory updates. These point out relevant policy and regulatory misalignment, meaning a business can stay one step ahead of changes. 

Compliance assurance and regulatory reviews can also support you stay compliant and in control — whether it’s understanding new obligations, implementing governance frameworks or observing licensing requirements.

Simplify Digital Asset Platform Compliance

The ASIC crypto regulation in Australia marks a significant shift for digital asset platforms. With new AFSL requirements, governance obligations and custodial standards on the horizon, businesses must act now to ensure compliance.

Understanding these changes is just the first step. For many digital asset platform providers, figuring out how new regulations apply to their operations is where the real challenge lies. Whether you’re navigating AFSL requirements, asset protection standards or evolving market rules, staying ahead means having the right strategy and support in place.

That’s where MIntegrity comes in. We help digital asset service providers assess their regulatory exposure, implement compliance frameworks and prepare for licensing under the new regime.

Contact us for more guidance on digital assets’ regulation and compliance.

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