Mandy Jiang

We are pleased to see the government’s progress in regulating digital assets through two recently released draft legislation packages: (1) digital asset and tokenisation platforms, and (2) Tranche 1 of Payment Services Modernisation. The DAP/TCP draft legislation represents a significant step forward in clarifying the regulatory treatment of digital asset custody providers. However, we have identified some definitional issues and gaps that should be addressed to ensure adequate customer protection.

While the Bill establishes the regulatory perimeter and core licensing mechanics, many critical details—including licensing conditions, custody standards, and disclosure formats—have been delegated to ASIC for future guidance. Consequently, whether this legislation achieves its stated objectives of fostering innovation and supporting sectoral growth and competition will largely depend on the timeliness and quality of ASIC’s forthcoming guidance.

This draft legislation represents a significant step towards clarifying the regulatory landscape for digital assets particularly for custody providers, which is a necessary condition for mainstream institutional adoption and safer retail participation.  However, substantial work remains to transform our financial system and fully integrate a digital asset ecosystem. For instance, enabling investors to obtain financial advice on digital assets would provide additional protection and increase consumer confidence in entering this sector. It focuses primarily on tokenisation platform providers, which are very narrowly defined, but it does provide much-needed clarity on the regulatory treatment of tokenised asset providers. Under current law, there is uncertainty around how tokenised RWAs should be classified as financial products and what authorisation is required to provide this service.

The transition period will largely depend on how quickly ASIC can issue the requisite guidance on licensing requirements and process new license applications. Based on the draft legislation, we expect ASIC’s new asset-holding standards to be more supportive of digital asset custodians. Given that Cloudtech already operates its custody services under current AFSL and RG133 requirements, we do not anticipate a difficult transition to the new regime.

By Mandy Jiang, Chief Financial Officer and Executive Director

The post Australia’s draft crypto legislation marks significant step forward appeared first on AdviserVoice.

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

The post Treasury’s Draft Digital Asset Legislation a Turning Point for Australia appeared first on AdviserVoice.