Australia’s New Digital Asset Regulations
‘Same Risk, Same Rules’
Australia is taking a decisive step toward bringing digital assets into the financial mainstream. Guided by the principle of “same risk, same regulation,” the federal government, led by Assistant Treasurer Daniel Mulino, has unveiled a landmark proposal that will require digital asset exchanges and custodians to meet the same rigorous standards as banks, brokers, and other licensed financial institutions. The move signals a maturing market that aims to protect consumers, legitimize responsible innovation, and strengthen trust in Australia’s growing digital economy.
A Roadmap of What’s Changing
Until now, Australian digital asset exchanges were only required to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and maintain anti-money laundering (AML) and Know Your Customer (KYC) programs. Here are highlight of what’s to come:
- The new framework significantly raises the bar. Exchanges and custodians will be required to obtain an Australian Financial Services Licence (AFSL) from the Australian Securities and Investments Commission (ASIC).
- Once licensed, these entities must comply with existing financial services obligations—acting honestly and fairly, maintaining sufficient resources, and managing conflicts of interest. Breaches of these obligations can result in fines ranging from $300 to several million dollars.
- Smaller exchanges will be exempt from licensing if they record less than $6.5 million in annual volume or hold under $3,300 in average customer deposits.
Secretary Mulino stated that the government’s goal is to legitimize compliant businesses, remove bad actors, and build consumer confidence in the Australian digital asset market, positioning the country as a leader in the global digital economy.
Industry Weighs In
The proposal has been well received by major local exchanges such as Independent Reserve and BTC Markets, which view the framework as a key step in maturing the industry.
According to reporting from CoinDesk, Kate Cooper, Chief Executive Officer of OKX Australia, noted:
“The draft legislation is the clearest signal yet that crypto is no longer operating on the fringes and is now embedded in the financial system. The real measure of this reform will be shown by the compliance and enforcement that follows its implementation, ensuring that responsible, licensed operators aren’t undercut by unregulated players and that Australian consumers are protected.”
Best Practices Moving Forward
As Australia moves to bring digital assets under the same regulatory standards as traditional finance, exchanges and custodians will need to adapt quickly. The proposed framework emphasizes transparency, accountability, and consumer protection, all of which require stronger governance and operational readiness. The following best practices can help organizations prepare effectively.
1. Prepare Early for Licensing and Governance Requirements
Begin aligning operations with AFSL licensing standards. Review governance structures, define accountability roles, and ensure compliance policies reflect expectations of honesty, fairness, and adequate financial resources.
2. Strengthen Custody and Asset Protection Controls
Implement strong systems to safeguard client assets. Maintain segregated custody arrangements, perform regular reconciliations, and ensure clear and transparent processes for settlement and redemption of digital tokens.
3. Automate Compliance, Reporting, and Accountability Processes
Use compliance technology and structured workflows to simplify ongoing compliance. Automate reporting, recordkeeping, and required disclosures such as the DAP/TCP Guide to stay audit-ready and meet ASIC transparency standards. In parallel, integrate processes to meet obligations under the Financial Accountability Regime (FAR) by clearly documenting roles, responsibilities, and conduct expectations for senior management and accountable persons.
How StarCompliance Can Help
Australia’s digital asset regulations are evolving, and firms must manage new licensing, governance, and accountability obligations. StarCompliance (Star) enables exchanges, custodians, and financial institutions to stay ahead through its Crypto Dealing Compliance Software and Individual Accountability Regime (IAR) solutions for the Financial Accountability Regime (FAR).
Crypto Dealing Compliance Software
Star’s Crypto Dealing Compliance Software helps digital asset businesses meet strict standards globally. It offers:
- Real-time monitoring of crypto trading and dealing activities to detect conflicts of interest and market abuse
- Automated pre-clearance and approvals for digital asset transactions
- Comprehensive recordkeeping and audit trails aligned with regulatory requirements
- Dynamic dashboards that visualize exposure and support faster, data-driven compliance decisions
With integrated automation and reporting, firms can demonstrate compliance with AFSL conditions and strengthen internal controls for digital asset operations.
Individual Accountability Regime for FAR
Star’s IAR solution helps firms meet obligations under the Financial Accountability Regime (FAR) by defining and managing accountability across the organization. Key capabilities include:
- Mapping accountability statements and responsibilities across business functions
- Monitoring conduct and attestations to ensure ongoing compliance
- Automating updates to reflect regulatory or structural changes
- Centralizing reporting to demonstrate governance and readiness to regulators and boards
A Unified Compliance Ecosystem
Together, Star’s crypto and accountability solutions embed regulatory compliance into everyday operations, reducing manual effort while improving transparency and governance. Whether you operate a digital asset exchange, custody service, or financial institution entering tokenized markets, Star provides the technology and expertise to keep your business compliant and ready for the next phase of Australia’s digital finance evolution.
To learn more about Star’s offerings, as well as book a demo, click [HERE].
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