Australia Introduces New Regulations for Digital Asset Firms

Australia has enacted a digital asset bill that establishes two new regulated categories, mandating exchanges and custody providers to obtain financial services licenses. According to NS3.AI, this framework integrates these firms into the Australian Financial Services Licence regime under the Australian Securities and Investments Commission (ASIC). The new regulations impose rules on client asset protection, disclosures, and dispute resolution. The law targets intermediaries holding customer funds rather than the cryptocurrencies themselves. Industry executives believe that these clearer regulations could bolster local investment and encourage institutional participation.