What is the Digital Assets Framework Bill?
Australia passed the Digital Assets Framework bill in April 2026 to clarify crypto regulation. Learn about what the bill means for Aussie crypto investors.
What is the Digital Assets Framework?
The Digital Assets Framework (DAF) is Australia's new regulatory regime for cryptocurrency exchanges, digital asset trading platforms, and digital asset custody providers.
The legislation establishes a licensing and oversight framework for businesses providing digital asset services in Australia. The goal is to improve consumer protection, strengthen market integrity, and provide greater regulatory certainty for the crypto industry.
Rather than creating an entirely separate framework, the DAF brings crypto businesses into Australia's existing financial services regime, so businesses such as crypto exchanges will soon be required to meet standards similar to those of traditional financial services providers.
The legislation introduces two key categories of regulated businesses:
Digital Asset Platforms (DAPs): Businesses that facilitate the buying, selling, or trading of digital assets.
Tokenised Custody Platforms (TCPs): Businesses that hold or safeguard digital assets on behalf of customers.
When did the Digital Assets Framework pass?
The Digital Assets Framework passed the Australian Parliament on 1 April 2026 and received Royal Assent on 8 April 2026. The legislation officially commences on 9 April 2027, giving industry participants an 18-month transition period to prepare for the new requirements.
This transition period is designed to give crypto businesses time to obtain the necessary licences, update compliance systems, and adapt their operations to the new regulatory standards.
What changes does the Digital Assets Framework make?
The new DAF framework introduces several major changes for Australia's digital asset sector.
Licensing requirements
Many digital asset businesses will be required to hold an Australian Financial Services Licence (AFSL) or obtain additional authorisations to operate legally in Australia. ASIC will become responsible for licensing and supervising eligible digital asset businesses.
Customer asset protection
The legislation establishes standards for how customer assets must be held and safeguarded. Requirements include:
Segregating customer assets from company assets.
Maintaining appropriate custody and security arrangements.
Keeping accurate records and reconciliations.
Supporting customer withdrawal rights.
These measures reduce the risk of customer funds being misused or lost, as was the case with several exchanges like FTX and Celsius.
Trading and market conduct standards
ASIC is expected to introduce standards covering:
Fair and orderly market operation.
Trading transparency.
Best execution practices.
Market surveillance and misconduct monitoring.
Settlement and transaction processes.
The aim is to bring crypto trading platforms closer to the standards already expected of traditional financial markets.
Financial requirements
Digital asset operators will also be required to meet minimum financial standards, including liquidity and capital requirements, as well as regular reviews of their financial position.
What is ASIC?
ASIC stands for the Australian Securities and Investments Commission, and thanks to the Digital Asset Framework, they’ll now be responsible for regulating crypto businesses, including:
Licensing digital asset platforms and custody providers.
Developing regulatory guidance.
Setting operational standards.
Supervising compliance.
Taking enforcement action where necessary.
ASIC has already published an implementation roadmap outlining how it plans to roll out the new regime between 2026 and 2027.
What's an AFSL?
An AFSL, or Australian Financial Services Licence, is a licence that allows a business to legally provide financial services in Australia.
AFSL holders must meet a range of obligations, including maintaining adequate financial resources, implementing compliance systems, managing risks appropriately, and treating customers fairly.
Under the Digital Assets Framework, many crypto businesses that previously operated in a regulatory grey area will need to obtain an AFSL or expand their existing licence authorisations from AUSTRAC, which may present challenges for some exchanges that are unable to meet the requirements.
What does the Digital Assets Framework mean for crypto investors?
For everyday investors, the framework is designed to improve confidence in the Australian crypto market. It’ll provide stronger safeguards for customer assets, increase transparency from crypto exchanges, and improve market integrity.
For businesses, it provides clearer standards to follow with greater regulatory oversight. This means fewer shady crypto businesses operating in Australia.
What happens next?
The legislation has passed, but the implementation process is only beginning as the specifics still need to be ironed out.
ASIC will spend the 18-month transition period consulting with industry, developing guidance, and establishing detailed operational standards for digital asset businesses. Areas under consultation include custody standards, trading rules, settlement requirements, and financial obligations.
During 2026 and early 2027, ASIC is expected to release new regulatory guidance and open licence applications for affected businesses. Once the regime commences on 9 April 2027, eligible digital asset platforms and custody providers will be required to comply with the new rules and licensing requirements.
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