ASIC and the New Digital Assets Framework 2026

Until now, digital assets in Australia have not been regulated under a single, dedicated regime. Instead, ASIC has relied on existing financial services laws, as outlined in INFO 225, applying them based on the characteristics of each product or arrangement.

In practice, this means that firms must assess whether a token or service fits within existing categories such as a financial product, managed investment scheme, derivative, or non-cash payment facility. The outcome depends less on how something is labelled, for example “crypto”, and more on the rights and benefits attached to it.

This approach has created a system that is legally sound but operationally complex. Firms face ongoing uncertainty, particularly when launching new products or structuring services. Two businesses offering similar services may be subject to different regulatory obligations due to structural differences.

As a result, the current environment has been characterised by:

>> Regulatory ambiguity, especially for exchanges and trading platforms

>> Uneven licensing requirements across similar business models

>> Gaps in areas like custody, execution standards, and platform governance

Importantly, firms are still required to comply with existing licensing obligations where applicable. The absence of a crypto-specific regime has never meant an absence of regulation.

The new framework introduces a fundamental shift in regulatory logic. Instead of focusing primarily on whether a specific token qualifies as a financial product, the law shifts attention to the platforms through which digital assets are offered and managed.

At the center of the reform are two new legal concepts:

These categories are now explicitly brought within the financial services regime. This means that regulation is no longer triggered only when a token resembles a traditional financial product. Instead, operating the platform itself becomes the regulated activity.

This represents a significant conceptual shift. It aligns digital assets more closely with the way traditional financial infrastructure, such as exchanges and custody providers, is regulated.

Under the current system, many crypto platforms operate outside the licensing perimeter unless their products clearly fall within existing financial product definitions. This ambiguity is now largely removed.

Under the new framework, operating a digital asset platform is itself a regulated financial service. As a result, firms will generally be required to hold an Australian Financial Services Licence (AFSL) if they:

• operate a trading platform or exchange
• hold digital assets on behalf of clients
• facilitate transactions in digital tokens

For firms that already hold an AFSL, this does not necessarily mean starting from scratch, but it does require reassessing whether their existing licence covers these new activities and whether additional authorisations are needed.

Another important change is the shift from traditional product-based disclosure to a platform-based disclosure model.

Instead of issuing a Product Disclosure Statement for each offering, firms will be required to provide a DAP/TCP Guide before onboarding retail clients. This document is intended to give clients a clear and comprehensive understanding of how the platform operates as a whole.

This reflects a recognition that, in digital asset markets, risks often arise not from individual tokens, but from the infrastructure through which they are traded and held.

The new framework also gives regulators and the government significant flexibility. The Minister has the power to:

This means the framework is not static. It is designed to evolve alongside the market, allowing regulators to respond more quickly to emerging risks.

The implementation of a lega timeline provides a transition period, but it is not especially long.

• The law comes into force 12 months after Royal Assent
• A further 6-month transition period allows firms to adjust licensing

In practice, this gives firms around 18 months to fully align their business models, which may require significant operational and legal changes.

Australia’s new digital assets framework represents a clear shift in regulatory philosophy. It moves the focus away from debating whether a token fits within existing definitions and toward regulating the platforms that underpin the market.

For brokers, fintech firms, and crypto providers operating spot cryptos, this brings greater clarity, but also higher expectations. Compliance will no longer be about navigating grey areas, but about demonstrating that platforms operate in a transparent, controlled, and client-focused manner.