Where things stand
Digital asset platform licensing framework
On 25 September 2025, the Australian Government released exposure draft legislation aimed at regulating operators of platforms that hold digital assets on behalf of customers. This marks a significant step in implementing the Government’s March 2025 Statement on Developing an Innovative Australian Digital Asset Industry, and forms part of a broader effort to modernise Australia’s digital asset regulatory framework.
The draft legislation proposes to introduce two new categories of financial products under the Corporations Act:
Digital Asset Platforms (DAPs); and
Tokenised Custody Platforms (TCPs).
Operators of these platforms will be required to hold an Australian financial services licence (AFSL) and comply with both the general obligations that apply to all AFSL holders such as acting efficiently, honestly and fairly, and meeting design and distribution obligations as well as new, targeted obligations specific to digital asset custody and transaction services.
These targeted obligations include compliance with ASIC minimum standards for asset-holding and transaction/settlement processes, the establishment and enforcement of platform rules, and the provision of a DAP/TCP Guide, which serves as a tailored disclosure document in place of a traditional Product Disclosure Statement.
The draft also introduces significant civil penalties for breaches, including the greater of 50,000 penalty units ($16.5 million), three times the benefit obtained, or 10% of the AFSL holder’s annual turnover. A low-value exemption is proposed for smaller DAPs, meaning platforms will not require an AFSL if they hold no more than $5,000 per client, facilitate less than $10 million in transactions over the previous 12 months, do not hold financial products under any DAP in their group, and have lodged notice with ASIC.
Importantly, the new obligations will not apply to digital asset issuers themselves or to businesses that create or use digital assets for non-financial purposes.
The consultation period for the draft legislation closes on 24 October 2025.
Stored-value licensing framework and payment stablecoins
On 8 December 2023, the Government released the second Payment System Modernisation: Regulation of Payment Service Providers consultation paper. The draft proposed a new licensing regime for payment service providers, including a dedicated framework for payment stablecoins to be regulated as a type of stored-value facility (SVF). The consultation on the draft closed on 2 February 2024, but draft legislation is yet to be released.
In its March 2025 Statement on Developing an Innovative Australian Digital Asset Industry, the Government reaffirmed that developing a payment licensing framework to regulate payment stablecoins as SVFs remains a key priority.
On 18 September 2025, ASIC granted class relief for intermediaries engaging in the secondary distribution of a named stablecoin issued by an AFSL holder. The relief states that eligible intermediaries will be relieved from the requirement to hold an AFSL, a market licence or a clearing and settlement licence in relation to a “named stablecoin”. Conditions to the relief include making a PDS available to retail clients. The only named stablecoin that is covered by the instrument is AUDM issued by Catena Digital Pty Ltd (ACN 669 901 302).
The relief instrument operates on the basis that AUDM is a financial product (i.e., non-cash payment facility), despite the overall regulatory status of stablecoins currently remaining unsettled.
What’s next
The Government has stated that it plans to release exposure draft legislation for public consultation in 2025, covering a:
a regulatory framework for payment stablecoins under the stored-value facility regime
a review of the enhanced regulatory sandbox.
However, as of September 2025 and no such draft legislation has been released.
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This article was originally published on 8 September 2025 and updated on 25 September 2025.