Treasury’s Draft Digital Asset Legislation a Turning Point for Australia
Mandy Jiang
The release of Treasury’s draft digital asset legislation marks a defining moment for Australia’s digital economy. For too long, businesses and investors have operated in a grey zone – keen to innovate but constrained by regulatory uncertainty. This framework finally provides the clarity and confidence our $3+ billion sector has been calling for.
Assistant Treasurer Daniel Mulino unveiled the draft on Thursday at the Digital Economy Council of Australia’s regulatory summit, describing it as “the cornerstone of our digital asset roadmap.” The bill proposes formally introducing Digital Asset Platforms and Tokenised Custody Platforms as financial products under the Corporations Act, bringing them under ASIC oversight.
Digital asset businesses will be required to hold Australian Financial Services Licenses, with penalties for non-compliance of up to the greater of $16.5 million, three times the benefit obtained, or 10% of annual turnover. Smaller platforms with limited activity will be exempt, and a consultation period runs until October 24.
By aligning digital assets with existing financial services laws, the government is making it clear that this market is here to stay, and that it will be held to the same standards as traditional financial products. This approach not only supports credible operators but also strengthens consumer protections, striking the balance needed to drive sustainable, long-term growth.
Custody at the heart of consumer protection
Exchanges often grab headlines, but custody is the cornerstone of consumer confidence. Robust, regulated custody is what prevents the next FTX-style collapse from wiping out investors. Our own AFSL-backed custody platform shows how institutional-grade security and operational resilience can safeguard client assets while supporting market growth.
Aligning with global best practice
The draft framework mirrors international successes such as the UK’s FCA principles and Europe’s MiCA regime. It’s a big step toward giving advisers, fund managers and institutions the confidence to integrate digital assets into portfolios with the same oversight and protections as any other financial product.
Unlocking adoption and innovation
Institutional adoption of blockchain, stablecoins and asset tokenisation is accelerating globally. With clear rules in place, Australia is signalling to the world that we are serious about building a trusted, well-regulated digital asset market. This will unlock mainstream adoption, draw institutional capital, and accelerate product innovation, transforming crypto from a niche asset class into a fully regulated part of Australia’s financial system.
For CloudTech, this draft framework represents an opportunity to scale innovation while giving our clients the assurance that their assets are protected under a strong regulatory framework. We believe this clarity will help unlock the next phase of growth for Australia’s digital economy.
By Mandy Jiang, Chief Financial Officer and Executive Director
