Australia Strengthens Digital Asset Regulation: AUSTRAC VASP Register and Digital Assets Framework Bill Passed
- At Ante
- Neque Sodales
- Excepteur
Australia’s digital asset regulatory landscape has taken a significant step forward with two key developments:
- The launch of the Virtual Asset Service Provider Register (VASPR) by AUSTRAC; and
- The passage of the Corporations Amendment (Digital Assets Framework) Bill 2025 through Parliament.
Together, these reforms signal a clear move toward a more comprehensive and structured regulatory regime for digital asset businesses operating in Australia.
AUSTRAC to Launch Public VASP Register
AUSTRAC will shortly publish its Virtual Asset Service Provider Register (VASPR), which replaces the previous digital currency exchange (DCE) register.
The public register is designed to:
- Enable users to verify whether a provider is registered with AUSTRAC
- Improve transparency across the digital asset sector
- Strengthen consumer confidence when engaging with virtual asset services
- Support a level playing field for compliant businesses
- Align Australia with international AML/CTF standards
Under Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime, businesses must bea registered with AUSTRAC before providing virtual asset services.
AUSTRAC retains the power to suspend, cancel or refuse registration where:
- Information provided is inaccurate
- The business presents heightened ML/TF risk
- The registration becomes inactive or non-compliant
It is important to note that AUSTRAC does not provide advice on the use of digital currency products or services.
Digital Assets Framework Bill Passed
The Corporations Amendment (Digital Assets Framework) Bill 2025 (The Bill) has now passed both Houses of Parliament on 1 April 2026.
This legislation represents a foundational shift in how digital asset activities are regulated under Australian financial services law.
Key Features
The Bill introduces and formalises several core concepts:
- Digital tokens
- Digital asset platforms (DAPs)
- Tokenised custody platforms (TCPs)
It also:
- Applies the existing financial services regime (including AFSL requirements) to digital asset activities in a tailored manner
- Provides targeted exemptions for certain arrangements
- Expands the regulatory powers of ASIC and the Minister in relation to digital asset platforms
Regulatory Impact: Dual Oversight Framework
These developments reinforce the emergence of a dual-regulatory framework for digital asset businesses in Australia:
- AUSTRAC – responsible for AML/CTF obligations, enrolment and registration
- ASIC – responsible for financial services licensing, conduct and investor protection
For businesses, this means regulatory obligations must be assessed across both regimes.
Key Considerations for Digital Asset Businesses
Operators should now carefully consider:
- Whether their services constitute a designated service requiring AUSTRAC registration
- Whether their business model involves factual control, custody, or platform operation, which may trigger AFSL licensing requirements
- Whether any transitional arrangements or exemptions may apply under the new framework
Particular attention should be given to models involving:
- Custody or control over client digital assets
- Platform-based trading, matching or execution services
- Fiat-to-crypto or crypto-to-crypto exchange services
- Tokenised financial products or investment structures
“As the framework continues to develop, early regulatory assessment and structuring will be critical for businesses operating in this space.”
Conclusion
The introduction of the VASP Register and the passage of the Digital Assets Framework Bill together mark a significant evolution in Australia’s approach to regulating digital assets.
These changes demonstrate a clear policy direction toward:
- Increased transparency and accountability
- Alignment with global regulatory standards
- Greater protection of the financial system and consumers