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AFSL Requirements for Crypto Exchanges in 2026

by Dario Sabljak | 22 April 2026

The regulatory “wild west” of Australian crypto has officially ended. Australia has passed the Corporations Amendment (Digital Assets Framework) Bill 2025 (the Bill) on 1 April 2026, which was first introduced on 26 November last year, amending the Corporations Act 2001 (Cth) (Corporations Act) and Australian Securities and Investments Commission Act 2001 (Cth) (ASIC Act), forcing crypto exchanges and custody providers to obtain an Australian Financial Services Licence (AFSL). On 8 April 2026, the Bill received Royal Assent, officially amending the Corporations Act and ASIC Act.

If you are a digital asset service provider (DASP), understanding the new AFSL requirements and the ASIC INFO 225 guidelines are no longer just “best practice” — it is a survival necessity.

What is the Digital Assets Framework Bill 2025?

The Bill has amended the Corporations Act and the ASIC Act expanding existing laws to cover digital tokens, digital asset platforms and tokenised custody platforms, particularly the requirement to hold an AFSL.

The regime introduces two critical new categories under the Corporations Act:

  • Digital Asset Platforms (DAP): a facility under which an operator possesses digital tokens (the underlying assets) on behalf of a client. This includes exchanges, brokers and custodians.

  • Tokenised Custody Platforms (TCP): a facility under which an operator holds underlying assets and issues a 1:1 digital token representing a right to redeem or direct delivery of that asset.

The Bottom Line: Operators of these platforms will be required to hold an AFSL and comply with the general obligations that apply to all AFSL holders, unless an exemption applies.

When the AFSL Requirement Arises for a Digital Asset Platform and/or Tokenised Custody Platform

In accordance with the Bill and Corporations Act, the AFSL requirement for an DAP becomes existent if the following is met:

  • It holds more than $5,000 for a single customer; and

  • It facilitates more than $10 million in total transaction value over a rolling 12-month period.

Or the operator lists a digital asset on its crypto exchange that is considered a financial product in line with ASIC INFO 225.

ASIC INFO 225: The Regulatory Playbook

With INFO 225, ASIC has provided 18 examples showing how ASIC applies existing financial product definitions to a range of digital asset scenarios. These examples cover exchange tokens, yield-bearing and non-interest-bearing stablecoins, tokenised securities, tokenised bonds, derivatives referencing digital assets and non-cash payment facilities such as digital wallets.

Examples ASIC considers likely to be financial products:

  • Staking and yield products: Services that allow users to earn returns through pooled or managed staking are generally treated as managed investment schemes or financial investments. ASIC’s view is that where users contribute assets that are used collectively to generate a return, the arrangement falls within the existing regime.
  • Yield-bearing stablecoins and asset-linked tokens: Stablecoins or other digital assets that offer a financial return or are backed by pooled assets are likely to be securities or interests in a managed investment scheme.
  • Wrapped tokens: ASIC continues to treat wrapped tokens as derivatives where the value of the wrapped token depends on, or tracks, another digital asset.
  • Custodial wallets and payment facilities: Wallet providers that hold or control client assets, or facilitate payments between users, are likely to be providing a non-cash payment facility and therefore a financial service.

Examples less likely to be financial products:

  • Bitcoin and similar native tokens: ASIC reiterates that Bitcoin is unlikely to be a financial product because it is not issued by an identifiable entity, does not create any enforceable rights or returns, and operates as a decentralised network token. Some comparable non-yield, widely traded tokens may also fall outside the framework, depending on how they are used.
  • Game coins: Tokens issued and used within a closed gaming environment, where they function purely as a medium of exchange for in-game items or services, are generally not financial products. Their purpose is transactional rather than investment-based.
  • Tokenised tickets: Tokens representing access to an event, such as a movie or concert, are unlikely to be financial products where they operate solely as digital proof of purchase or admission, even if their resale value increases.

Further, ASIC confirms that digital assets must be individually assessed to determine whether they constitute financial products. This means digital asset platforms and tokenised custody platforms will need to undertake a comprehensive legal analysis of each digital asset they issue or support.

Other Considerations for Digital Asset Platforms and Tokenised Custody Platforms

Other considerations for DAPs and TCPs under the Bill and Corporations Act include:

  • Disclosure: disclosure obligations including the requirement to provide clients the same disclosure about the underlying assets they acquire through a DAP or TCP. This is the same disclosure they would receive if they acquired those assets directly. Operators must also prepare and publish a platform guide, platform voting policy and platform rules.

  • ASIC Minimum Standards: minimum standards to be developed by ASIC relating to asset holding, transactions and settlement.

  • Staking: certain ‘custodial staking arrangements’ will not be managed investment schemes or financial products.
  • Wrapped Tokens: redemption rights are disregarded when deciding whether a wrapped token (or rights attached to it) is a financial product, unless the holder’s rights materially differ from holding the referenced asset directly.
  • Targeted Fundraising, Product Disclosure and Anti‑hawking Relief: certain fundraising, product disclosure and anti‑hawking obligations do not apply on the basis that investor protection is delivered through the platform guide together with underlying‑asset disclosures.
  • Incidental Arranging Relief: a person primarily engaged in a non‑financial services business is not required to hold an AFSL only because, in the ordinary course of that business, they arrange for a person to use a DAP or TCP or inform them of its availability. The relief is limited to introductions and incidental arranging.

Next Steps

The Digital Asset Framework legislation will commence on 9 April 2027 which is 12 months after the Bill received Royal Assent.

The Digital Asset Framework legislation prescribes a ‘transition period’ of six months from commencement of the legislation, being 9 October 2027, for ASIC to assess and determine AFS licence applications. Recognising this may not be practically achievable, the Digital Asset Framework legislation now allows a person who applies for an AFS licence (or a variation) covering DAPs or TCPs during the transition period to continue operating while ASIC reviews the application.

How We Can Help

The Australian crypto market is maturing and the competitive advantage lies with compliant platforms. DAPS and TCPs must be proactive and take steps to ensure they meet all requirements under applicable legislation and regulations to avoid severe penalties.

Adria Group are experts in financial services laws and regulations, particularly in how they relate to digital assets, and can assist digital asset businesses in ensuring they efficiently transition to meeting the AFSL requirement, where it is applicable, and maintaining compliance with the evolving and stringent laws and regulations.

Contact us today for a free consultation on 1800 955 816 or [email protected].

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