Australia Addresses Regulatory Gaps in Crypto Market Through New Digital Assets Framework

Australia is taking decisive action to close significant regulatory gaps in the cryptocurrency sector. The Securities and Investments Commission (ASIC) has identified fundamental gaps in how digital assets are currently regulated, marking a critical turning point for the nation’s crypto industry. As reported by Foresight News, these oversight gaps have become a pressing concern that requires immediate legislative attention.

ASIC Highlights the Regulatory Gaps in Crypto Oversight

The identification of these regulatory gaps comes at a crucial time for Australia’s financial market development. ASIC has emphasized that the existing regulatory framework fails to adequately cover cryptocurrency trading and custody operations. These gaps have created uncertainty for market participants and posed systemic risks to consumer protection. The commission’s assessment underscores the necessity for a comprehensive legislative response to address the shortcomings in the current system.

Corporations Amendment Bill 2025: Closing the Framework Gaps

To remedy these gaps, Australia is progressing with the “Corporations Amendment (Digital Assets Framework) Bill 2025.” This landmark legislation is designed to establish clear regulatory requirements for the crypto industry. The proposed framework will compel cryptocurrency trading platforms and digital asset custody providers to secure an Australian Financial Services License (AFSL). By implementing these licensing requirements, Australia aims to eliminate the existing regulatory gaps while ensuring consumer protection and market integrity.

The new framework represents a significant step toward modernizing Australia’s approach to digital asset regulation. Once enacted, the legislation will create a comprehensive structure that closes current gaps and provides regulatory clarity for all market participants operating within the Australian jurisdiction.