Digital assets framework receives Royal Assent: New AFS licensing regime for platforms and custody providers

by Alanah McAliece

The Corporations Amendment (Digital Assets Framework) Act 2026 (Cth) (Act) has now received Royal Assent, confirming the introduction of a new regulatory framework for digital asset platforms and custody arrangements.

As discussed in our previous articles on the introduction of the Digital Assets Bill and the Senate Committee’s endorsement of the framework, the reforms adopt an activity-based approach, bringing certain digital asset services within the existing financial services regime. With the passage of the Act, the framework is now settled and will move to implementation.

Overview of the framework

The Act introduces two new financial products into the Corporations Act 2001 (Cth):

  • digital asset platforms; and
  • tokenised custody platforms.

Broadly, these capture arrangements where an operator holds digital tokens or underlying assets on behalf of clients, including as trustee, bailee or under contractual arrangements requiring the operator to act on client instructions.

Consistent with the approach outlined in our earlier articles, the regime does not regulate digital tokens as a standalone asset class. Instead, it focuses on the entities that hold, control or facilitate transactions in those assets.

The framework is supported by new statutory concepts, including ‘digital token’, ‘factual control’ and ‘possession’, which determine when licensing obligations are triggered.

Licensing and obligations

Operators of digital asset platforms and tokenised custody platforms will be required to hold an Australian financial services (AFS) licence, unless an exemption applies.

In addition to the general AFS licensee obligations, operators will be subject to platform-specific requirements. These include:

  • compliance with asset holding and transactional standards to be made by ASIC;
  • requirements relating to custody, safeguarding and use of client assets;
  • the preparation and maintenance of platform rules governing the operation of the platform; and
  • a tailored disclosure regime requiring the provision of a platform guide to retail clients.

Platform rules will have contractual effect between operators and clients.

Commencement and transition

The Act will commence on 9 April 2027. A six-month transition period will apply following commencement, during which existing operators may continue operating while applying for an AFS licence or licence variation. Where an application is made within that period, the regime will not apply until ASIC has determined the application.

Implications for industry

With the Act now passed, participants in the digital asset sector should begin preparing for implementation. This includes assessing whether their activities fall within the scope of the regime, determining licensing requirements, and reviewing custody arrangements, governance frameworks and disclosure practices.

For further information or assistance in assessing your position or preparing for the new regime, please contact Chris Mee at cmee@cnmlegal.com.au or Alanah McAliece at amcaliece@cnmlegal.com.au, or call 07 3211 4010.

This article is produced as general information in summary for clients and should not be relied upon as a substitute for detailed legal advice or as a basis for formulating business or other decisions. CNM Legal asserts copyright over the contents of this article.