In a significant move towards regulating the cryptocurrency sector, Australia’s corporate regulator, ASIC, has unveiled its plan to classify crypto assets based on their economic function rather than their underlying technology. This crucial shift marks a new era for digital asset companies operating in Australia, aligning them more closely with established financial regulations.
Speaking at the Melbourne Money & Finance Conference on March 11, 2026, ASIC’s Rhys Bollen emphasized the importance of assessing digital assets through their economic substance. He likened blockchain technology to “new plumbing” for existing financial services, underscoring its potential to upgrade and enhance the financial system.
Under the new regulatory framework, tokenized securities will be governed by existing securities laws while stablecoins will be classified under payment services regulations. Bollen made it abundantly clear that companies can no longer sidestep compliance by using technical jargon.
ASIC’s focus will primarily be on intermediaries—including custody providers, trading platforms, and lending services—who pose the greatest risk to consumers. This approach signifies a shift towards a more penetrating oversight of the crypto ecosystem, ensuring that parties influencing a protocol’s design cannot evade legal accountability by claiming decentralization.
The proposed Digital Assets Framework Bill 2025, currently making its way through the Australian parliament, will mandate Digital Asset Platforms to secure an Australian Financial Services Licence. Moreover, tokenized custody platforms will also need to comply with this licensing requirement. The legislation is expected to pass in 2026, signifying a pivotal moment for crypto governance in Australia.
Companies failing to adhere to the new regulations may face penalties up to 10% of their annual turnover, creating a strong incentive for compliance. Additionally, ASIC has announced that the no-action position currently in place will be extended until June 30, 2026, allowing companies time to align with the new framework.
Furthermore, digital asset firms must register with AUSTRAC from March 31, 2026, and implement robust anti-money laundering programs. While larger operators face stringent requirements, some smaller platforms—those handling less than A$5,000 per customer and under A$10 million in total annual transactions—may be exempt from certain licensing obligations, easing the regulatory burden.
The government projects annual productivity gains of A$24 billion from the implementation of this regulatory framework. This ambitious figure has been highlighted by lawmakers as a crucial benefit of the forthcoming reforms.
However, industry leaders have expressed mixed sentiments regarding the newly proposed regulations. Jason Titman, CEO of Swyftx, has voiced concerns over the expansive regulatory powers embedded in the bill, arguing for clearer definitions and limits on discretion to prevent overreach.
Criticism has also arisen from remarks Bollen made comparing Bitcoin to cigarettes used as a form of currency in prisons, which many industry proponents believe undermines the more nuanced role crypto plays in financial transactions today.
Tensions regarding de-banking practices have surfaced as banks have often cut ties with crypto firms amid regulatory uncertainties. The introduction of a clearer legal status for licensed firms aims to alleviate this issue and restore relationships between financial institutions and the crypto sector.
As the clock ticks on compliance deadlines, the crypto community in Australia awaits the finalization of the Digital Assets Framework Bill, which promises to define the operational playing field for years to come.
