The Corporations Amendment (Digital Assets Framework) Act 2026 (the DAF Act) passed both houses of Australia's Parliament on 1 April 2026, received Royal Assent on 8 April 2026, and is scheduled to commence on 9 April 2027, providing an 18-month implementation window. The Act amends the Corporations Act 2001 (Cth) to bring digital asset businesses within Australia's mainstream financial services licensing regime for the first time. It is the first federal legislation to regulate cryptocurrency exchanges and digital asset custody providers in Australia at the national level.
The DAF Act creates two regulated categories within the Corporations Act 2001. A Digital Asset Platform (DAP) is defined as a facility where an operator holds digital tokens or their underlying assets, whether for the operator or on behalf of a third party. A Tokenised Custody Platform (TCP) is a facility where an operator holds a non-money asset and issues a single digital token per asset unit, conferring on the token holder the right to redeem or direct delivery of the underlying asset. Both DAPs and TCPs must hold an Australian Financial Services Licence from ASIC under Part 7.6 of the Corporations Act, subjecting them to conduct obligations equivalent to those applied to brokers and fund managers, including capital adequacy requirements, standardised client disclosures, dispute resolution access, and compensation arrangements. The Act amends section 981H of the Corporations Act to impose a statutory trust structure ensuring that client digital assets are held on trust and remain the legal property of the client, protected in an operator insolvency.
Cryptocurrency exchanges, stablecoin issuers, digital asset custodians, and tokenisation platform operators targeting Australian residents must obtain an AFSL before the 9 April 2027 commencement date or cease operations. ASIC published its implementation roadmap in May 2026, setting out the AFSL application process and interim guidance for entities seeking transitional operating permissions. Foreign operators accessing Australian markets through online channels fall within the territorial scope provisions and must obtain a licence unless they qualify for a recognised foreign financial services provider exemption. ASIC has indicated that it will treat unlicensed post-commencement operation as a priority enforcement matter.
The Act does not resolve the classification of all digital assets as financial products in every context; certain utility tokens and non-fungible tokens remain outside the DAP and TCP definitions pending further ASIC guidance. ASIC retains authority under delegated powers to expand the definition of digital assets covered by the Act. The 18-month transition window is structured but narrow; entities with complex product lines involving both DAP and TCP activities should begin AFSL application planning promptly given ASIC's typical processing timeframes.
Licentium advises digital asset exchanges, custodians, and tokenisation platforms on Australian financial services licensing strategy and draws on a partner network of Australian regulatory counsel for AFSL applications and ASIC engagement. Contact us to discuss your obligations under the DAF Act and how the 2027 commencement affects your current structure and operations. Work we undertake includes AFSL application strategy, digital asset classification analysis, custody structure design, and regulatory implementation planning.
Source: ASIC, ASIC's roadmap for digital assets law reform implementation, 2026