Crypto Asset Secondary Service Provider (CASSPr) licensing reforms
Treasury consultation 2024 on bespoke crypto licensing — separate from AFSL.
Who must comply
Operators of digital asset platforms and tokenised custody platforms that hold digital tokens or underlying assets for clients (exchanges and custodial wallet providers, for example). Small platforms may rely on the s 911A(2)(ja) exemption only if no financial products are held, platform transactions in the last 12 months total no more than $10 million, each client's underlying assets do not exceed $5,000 in entry value, and the operator has lodged a notice with ASIC.
What triggers it
Providing a financial service in relation to a digital asset platform or tokenised custody platform on or after commencement of Schedule 1 to the Corporations Amendment (Digital Assets Framework) Act 2026.
When due
Schedule 1 commences on the day after the 12-month period beginning on Royal Assent (8 April 2026). Apply for a new AFSL, or a variation of an existing AFSL, within the six-month transition period that starts on commencement to keep operating while ASIC decides.
Evidence required
Assessment of whether each product is a digital asset platform or tokenised custody platform; AFSL application or variation lodged within the transition period; for small-scale operators, the ASIC exemption notice and monitoring of the $10 million and $5,000 limits; custody, client-asset and platform-rules documentation.
Max penalty
Providing a financial service without the required AFSL contravenes Corporations Act s 911A; s 911A(5B) is a civil penalty provision. Under s 1317G the maximum civil penalty is the greater of 5,000 penalty units ($1.82M) or three times the benefit for an individual, and for a body corporate the greatest of 50,000 penalty units ($18.2M), three times the benefit, or 10% of annual turnover capped at 2.5 million penalty units.
Who must comply with this? The applicability test by industry, business structure and size.
Summary
The licensing reform for crypto intermediaries is now law. The Corporations Amendment (Digital Assets Framework) Act 2026 received Royal Assent on 8 April 2026 and brings two new financial products into the Corporations Act: a digital asset platform (s 761GC), where an operator possesses digital tokens for or on behalf of clients, and a tokenised custody platform (s 761GD), where an operator holds a real-world asset and issues a single digital token that confers a right to redeem it. Operators therefore need an Australian financial services licence (AFSL) authorising those services. Schedule 1 commences the day after the 12 months beginning on Royal Assent, and a six-month transition period follows commencement. A business that applies to ASIC for the licence or variation during the transition period can keep operating until ASIC decides; one that does not apply is covered as soon as the transition period ends.
Enforced by
Industries
Topics
Related
- CWLTHPayment Service Provider (PSP) licensing reform — implementation pendingTreasury reform of payments licensing to capture digital wallets + Buy Now Pay Later + stored value.
- CWLTHCrypto Asset Platform licensing (Treasury reforms 2024-2025)Treasury scoping CASP regime for digital asset platforms.
- CWLTHStablecoin payments licensing — Treasury reforms (in scoping)Treasury reforms scoping payment stablecoin licensing under PSP regime.
- All statesHold valid liquor licence (state liquor licensing)Liquor sale / supply requires state-issued licence; multiple categories.
- All statesHold state-issued gambling licence (operator + venue)Wagering, casino, gaming machine + lottery operators require state-issued licences with operator probity.
- CWLTHHold a current real estate agent licence (state-specific)Selling agents must hold a current licence issued by their state fair trading regulator.
Frequently asked questions
- Who must comply with Crypto Asset Secondary Service Provider (CASSPr) licensing reforms?
- Operators of digital asset platforms and tokenised custody platforms that hold digital tokens or underlying assets for clients (exchanges and custodial wallet providers, for example). Small platforms may rely on the s 911A(2)(ja) exemption only if no financial products are held, platform transactions in the last 12 months total no more than $10 million, each client's underlying assets do not exceed $5,000 in entry value, and the operator has lodged a notice with ASIC.
- What triggers Crypto Asset Secondary Service Provider (CASSPr) licensing reforms?
- Providing a financial service in relation to a digital asset platform or tokenised custody platform on or after commencement of Schedule 1 to the Corporations Amendment (Digital Assets Framework) Act 2026.
- When is Crypto Asset Secondary Service Provider (CASSPr) licensing reforms due?
- Schedule 1 commences on the day after the 12-month period beginning on Royal Assent (8 April 2026). Apply for a new AFSL, or a variation of an existing AFSL, within the six-month transition period that starts on commencement to keep operating while ASIC decides.
- What is the maximum penalty for Crypto Asset Secondary Service Provider (CASSPr) licensing reforms?
- Providing a financial service without the required AFSL contravenes Corporations Act s 911A; s 911A(5B) is a civil penalty provision. Under s 1317G the maximum civil penalty is the greater of 5,000 penalty units ($1.82M) or three times the benefit for an individual, and for a body corporate the greatest of 50,000 penalty units ($18.2M), three times the benefit, or 10% of annual turnover capped at 2.5 million penalty units.
- What evidence is required for Crypto Asset Secondary Service Provider (CASSPr) licensing reforms?
- Assessment of whether each product is a digital asset platform or tokenised custody platform; AFSL application or variation lodged within the transition period; for small-scale operators, the ASIC exemption notice and monitoring of the $10 million and $5,000 limits; custody, client-asset and platform-rules documentation.
Source: https://www.legislation.gov.au/C2026A00038/latest/text. Rules Mate is not a law firm. Always verify against the live regulator source before acting.