Australia

1. Legal Status

Tokenized real-world assets are legal in Australia and are regulated under the existing financial services framework. Until 2026, Australia had no bespoke tokenization legislation; the Australian Securities and Investments Commission (ASIC) applied the Corporations Act 2001 to determine whether a tokenized asset constituted a "financial product," triggering existing licensing, disclosure, and conduct requirements.

That position changed in April 2026. The Corporations Amendment (Digital Assets Framework) Act 2026 (Act No. 38 of 2026) — the country's first dedicated digital-asset statute — passed both houses of Parliament on 1 April 2026 and received Royal Assent on 8 April 2026. It amends the Corporations Act 2001 to create two new financial-product categories: Digital Asset Platforms (DAPs) and Tokenised Custody Platforms (TCPs), both requiring an Australian Financial Services Licence (AFSL). The Act commences on 9 April 2027 (12 months after assent), with a 6-month transition window thereafter — an 18-month total implementation runway.

ASIC's updated Information Sheet 225 (INFO 225) — revised in October 2025 — remains the operative guidance on when digital assets, including tokenized RWAs, qualify as financial products under existing law during the transition.

Sources:

• Corporations Amendment (Digital Assets Framework) Act 2026 (No. 38) — ATO published copy
• Corporations Amendment (Digital Assets Framework) Bill 2025 — Parliament of Australia
• ASIC's roadmap for digital assets law reform implementation — ASIC
• ASIC INFO 225 Update Media Release (25-250MR)
• New Digital Asset Laws — Treasury Ministers

2. Regulatory Framework

2.1 Primary Legislation

2.2 Key Regulatory Bodies

• Australian Securities and Investments Commission (ASIC): Primary regulator for financial products, including tokenized securities. Issues AFSL licences and enforces conduct standards.
• Australian Transaction Reports and Analysis Centre (AUSTRAC): AML/CTF regulator for digital currency exchange providers.
• Reserve Bank of Australia (RBA): Monetary policy and payment system oversight, including CBDC exploration.
• Treasury: Policy body for digital asset legislation.

2.3 ASIC INFO 225 (Updated October 2025)

ASIC's Information Sheet 225 "Crypto-assets: Financial products and services" provides the authoritative guidance on when digital assets are financial products. The October 2025 update expanded the guidance to include specific examples of:

• Tokenised securities — digitized versions of traditional securities (shares, bonds)
• Stablecoins — classified as financial products (non-cash payment facilities or managed investment scheme interests)
• Wrapped tokens — representations of assets on different blockchains
• Tokenised real estate — may constitute interests in a managed investment scheme
• Digital asset wallets — platforms for storing and managing digital assets

ASIC Commissioner Alan Kirkland stated: "Many widely used digital assets qualify as financial products under current law."

2.4 Token Mapping Consultation (2023)

In February 2023, Treasury released a Token Mapping Consultation Paper to categorize crypto ecosystem elements. The consultation adopted a "functional approach" — focusing on what the token does rather than how it is built. If a digital asset performs a traditional financial function (investment, payment), it is likely to be a financial product. This informed the subsequent INFO 225 update and the 2025 Bill.

Sources:

• ASIC INFO 225 Update — Media Release
• Treasury Token Mapping Consultation — FinTech Law Blog
• Regulating Digital Asset Platforms — Treasury Consultation

3. Securities Classification

3.1 When Tokenized RWAs Are Financial Products

Under the Corporations Act, a tokenized asset is a "financial product" if it falls within any of the following categories:

3.2 New Categories Under the Digital Assets Framework Act 2026

The enacted Corporations Amendment (Digital Assets Framework) Act 2026 introduces two new financial product categories (effective on commencement, 9 April 2027):

• Digital Asset Platform (DAP): A facility under which an operator holds digital tokens (underlying assets) — for itself or on behalf of another person — typically recording client interests via accounts. Captures centralised exchanges that custody customer tokens and custodial wallet providers; covers trading and custodial functions.
• Tokenised Custody Platform (TCP): A facility where the operator identifies and holds an asset (other than money) and issues a single digital token per asset, possession of which confers a right to redeem or direct delivery of the underlying asset. TCPs maintain a strict one-to-one asset-to-token ratio and cannot be used for fractionalised interests.

TCPs are designed to facilitate tokenization of physical assets (gold, commodities), intangible assets (shares, bonds), and digital tokens (wrapping/bridging arrangements).

3.3 Exemptions

The Act provides a low-value exemption (subject to conditions) for smaller operators:

• Platforms holding less than AUD 5,000 per customer AND facilitating less than AUD 10 million in transactions per year (rolling 12-month threshold)
• Incidental arrangements by non-financial businesses
• Public digital token infrastructure
• Certain wrapped token structures

Sources:

• Tokenisation in Australia — What the Digital Assets Framework Bill Means in Practice — Squire Patton Boggs
• Australia passes highly anticipated digital asset regulation — Gilbert + Tobin
• Regulating DAPs and TCPs — Ashurst

4. Licensing & Registration

4.1 Australian Financial Services Licence (AFSL)

Any entity dealing in, providing advice on, or operating a market for tokenized financial products must hold an AFSL under the Corporations Act. This includes:

• Dealing in tokenized securities
• Providing financial advice on tokenized products
• Operating a financial market for tokenized securities
• Providing custodial services for tokenized assets

4.2 AFSL Requirements

4.3 DAP / TCP Licensing Under the Digital Assets Framework Act 2026

Once the Act commences (9 April 2027), DAP and TCP operators must hold an AFSL covering the new financial products. ASIC published an implementation roadmap signalling it will consult on three standards categories before commencement:

ASIC has stated guidance will be principles-based, with additional guidance only where necessary to avoid duplicating existing AFSL obligations. The specific quantum of NTA / liquidity / capital requirements for DAP and TCP licensees is NOT VERIFIED — ASIC's consultation on financial-requirements standards is scheduled for months 6–12 of the implementation period and figures are not yet public. Application/annual licensing fees, custody-substance staffing thresholds, and passporting treatment for these new product categories are likewise NOT VERIFIED pending that consultation.

4.3a Transitional Arrangements

ASIC granted a sector-wide class no-action position under INFO 225 until 30 June 2026 to allow firms time to consider the updated guidance and lodge AFSL applications. Conditions include AFCA (Australian Financial Complaints Authority) membership and foreign-company registration for non-Australian entities. This relief addresses the pre-commencement period under existing law.

Under the enacted Act, the regime commences 9 April 2027, followed by a 6-month transition window during which existing operators may continue operating while they apply for an AFSL (or variation); compliance timing is deferred pending ASIC's licensing decision. From month 18 onward the regime is fully operational with ASIC supervision and enforcement.

Sources:

• ASIC's roadmap for digital assets law reform implementation — ASIC
• ASIC updates INFO 225 and issues a class no-action letter — Norton Rose / Regulation Tomorrow

4.4 AUSTRAC Registration

Digital currency exchange providers must register with AUSTRAC and comply with AML/CTF obligations, regardless of whether the exchanged assets are also financial products under the Corporations Act.

4.5 Industry Activity

BTC Markets, a major Australian crypto exchange, notified ASIC in 2025 of its intention to apply for a markets licence to offer regulated tokenized RWAs, signaling growing institutional interest.

Sources:

• ASIC Updated Guidance and No-Action Letter — Regulation Tomorrow
• BTC Markets ASIC License Application — Cointelegraph
• Australia Crypto License 2025 — Gofaizen & Sherle

5. Taxation

Australia's tax treatment of tokenized assets follows the Australian Taxation Office (ATO) guidance on crypto-assets:

• Capital gains tax (CGT): Gains on disposal of tokenized securities held as investments are subject to CGT. Individuals holding for more than 12 months may be eligible for the 50% CGT discount.
• Ordinary income: If tokenized assets are held as trading stock or for business purposes, gains are taxed as ordinary income.
• Interest/dividend equivalents: Income flows from tokenized bonds or equity tokens are taxed according to their character (interest, dividends, distributions).
• GST: The supply of digital currency is GST-free under the A New Tax System (Goods and Services Tax) Act 1999, though this applies to "digital currency" as defined and may not cover all tokenized RWAs.

The ATO has not issued specific guidance on the tax treatment of tokenised custody platform tokens or digital asset platform interests proposed under the 2025 Bill.

Sources:

• [Australia Crypto Tax — ATO guidance referenced in multiple sources]
• Asset Tokenization Regulations for Australia — SoluLab

6. AML & Compliance

6.1 AML/CTF Framework

AUSTRAC regulates AML/CTF for digital currency exchange providers under the AML/CTF Act 2006. Requirements include:

• Registration as a digital currency exchange (DCE) provider
• Customer identification (KYC)
• Ongoing customer due diligence
• Transaction monitoring and suspicious matter reporting (SMRs)
• Record-keeping for 7 years
• FATF Travel Rule compliance for virtual asset transfers

6.2 ASIC Conduct Obligations

AFSL holders dealing in tokenized financial products must also comply with:

• Product disclosure statement (PDS) requirements
• Design and distribution obligations (DDO) — requiring target market determinations
• Best interests obligations (for advisers)
• Market integrity rules (for market operators)

Sources:

• ASIC Consults on Proposed Updates — MinterEllison
• Australia Crypto License — Gofaizen & Sherle

7. Enforcement Actions & Penalties

ASIC has enforcement powers including:

• Civil and criminal proceedings for unlicensed financial services
• Infringement notices and enforceable undertakings
• Banning orders against individuals
• Market manipulation and insider trading enforcement (applicable to tokenized securities on regulated markets)

Maximum penalties for carrying on a financial services business without an AFSL include 5 years imprisonment and/or fines of up to AUD 555,000 for individuals and significantly higher amounts for corporations.

ASIC Chief Joe Longo warned in 2025 that Australia "risks losing tokenization edge" without clear regulatory action, signaling the regulator's awareness of competitive pressure from

Singapore,

Hong Kong, and the

EU.

Sources:

• ASIC Chief Warns — Blockchain News

8. Recent Developments (2024–2026)

8.1 Digital Assets Framework Act Passed and Assented (April 2026)

The Corporations Amendment (Digital Assets Framework) Bill 2025 was introduced to Parliament on 26 November 2025, passed both houses on 1 April 2026, and received Royal Assent on 8 April 2026 as the Corporations Amendment (Digital Assets Framework) Act 2026 (No. 38 of 2026) — Australia's first dedicated digital-asset statute. Key features:

• Creates two new financial product categories (DAP and TCP) under the Corporations Act
• Requires AFSL for operators of both
• Low-value exemption for platforms holding < AUD 5,000/customer and < AUD 10 million/year
• Commences 9 April 2027 (12 months after assent), then a 6-month transition window for licence applications

8.2 Project Acacia Final Report (18 May 2026)

The RBA and Digital Finance Cooperative Research Centre (DFCRC) released the Project Acacia final report on 18 May 2026 (RBA media release 2026-13). Industry participants developed and tested 20 wholesale tokenised-asset use cases spanning government and corporate bonds, repo, bank term deposits, investment funds, trade payables and mining royalties. Settlement was tested across multiple forms of digital money: traditional RBA exchange settlement account (ESA) balances, a pilot wholesale CBDC (wCBDC), tokenised commercial bank deposits, and stablecoins. ASIC provided regulatory relief to streamline the pilots.

In a March 2026 speech ("After Acacia"), RBA Assistant Governor Brad Jones outlined a multi-stream follow-on program: a digital financial market infrastructure (DFMI) sandbox, a Regulator-Industry Tokenisation Advisory Group, an expanded Deposit Token Working Group, and evaluation of government-issued tokenised bonds (framed as future analysis, not a policy commitment). He noted wCBDC is "important but not essential" for initial tokenised-market development.

8.3 ASIC INFO 225 Update and Licensing Cliff

The October 2025 INFO 225 update clarified that stablecoins, wrapped tokens, tokenised securities, and digital asset wallets are financial products requiring AFSLs, with five new examples (bitcoin, native proof-of-stake staking, tokenised real estate, wrapped tokens, non-interest-bearing stablecoins), and proposed targeted regulatory relief for stablecoin and wrapped-token distributors. With the class no-action position expiring 30 June 2026, industry reporting (CoinReporter, 2 June 2026) estimated roughly 400 crypto platforms facing the licensing deadline, of which only about 10% then held an AFSL. (Platform-count figure is industry-reported, not an ASIC figure.)

8.4 Project Acacia Regulatory Relief (Earlier Phase)

Prior to the final report, ASIC granted practical relief (July 2025) for Project Acacia participants, supporting responsible testing of tokenised-asset settlement using public and private digital money — demonstrating the regulator's willingness to facilitate innovation within the licensing framework.

8.5 ASX CHESS Replacement

The Australian Securities Exchange's original project to replace its CHESS clearing and settlement system with DLT-based technology (built by Digital Asset) was abandoned in November 2022 after delays and cost overruns; ASX took a write-down of approximately AUD 250 million. ASX moved to a non-DLT replacement (delivered by TCS). CHESS Release 1 (clearing) completed its operational go-live milestones in the first half of 2026 (ASX confirmed transition through Hypercare stages by 5 May 2026); Release 2 (settlement and sub-register) is targeted for 2029. This diminishes expectations for near-term DLT integration in Australia's core securities infrastructure.

8.6 Industry Developments

Multiple Australian firms are pursuing licensing for tokenized RWA activities, including BTC Markets (which notified ASIC in 2025 of intent to apply for a markets licence for tokenized RWAs) and various digital asset platforms preparing for the new regulatory framework.

Sources:

• Corporations Amendment (Digital Assets Framework) Act 2026 (No. 38) — ATO published copy
• Corporations Amendment (Digital Assets Framework) Bill 2025 — Parliament of Australia
• RBA and DFCRC Release Findings From Project Acacia (MR 2026-13) — RBA
• After Acacia: The Next Era of Financial System Innovation? (speech, 25 March 2026) — RBA
• ASIC's roadmap for digital assets law reform implementation — ASIC
• Australia faces licensing cliff for 400 crypto platforms by June 2026 — CoinReporter (2 June 2026)

9. Assessment

9.1 Strengths

• Functional approach: Australia's "substance over form" classification — looking at what a token does, not how it is built — provides a principled framework adaptable to new token types.
• Transitional relief: The sector-wide no-action position until June 2026 gives industry time to adjust without abrupt enforcement.
• Enacted bespoke legislation: The Digital Assets Framework Act 2026 (assented 8 April 2026) provides clear, dedicated rules for DAPs and TCPs, moving Australia from guidance-only to statute.
• Strong AML/CTF framework: AUSTRAC registration and ASIC conduct obligations provide comprehensive compliance infrastructure.

9.2 Weaknesses

• Framework not yet in force: The 2026 Act does not commence until 9 April 2027; until then, tokenized RWAs are still governed by general financial-product law and INFO 225 guidance, and key DAP/TCP standards (NTA, custody, settlement) remain to be set by ASIC consultation.
• CHESS failure overhang: The ASX's abandoned DLT project (AUD 250m write-down) has dampened institutional enthusiasm for DLT in core market infrastructure; the 2026 CHESS replacement is non-DLT.
• Slow legislative timeline: The token mapping consultation began in 2023; the exposure draft appeared only in September 2025; assent came April 2026 with commencement deferred to 2027.
• Limited notable issuances: Outside Project Acacia's small-scale pilots, Australia lacks the large-scale tokenized bond programs of
  Hong Kong or
  Japan.

9.3 Comparative Position

With the Digital Assets Framework Act 2026 now enacted, Australia has joined the set of jurisdictions with bespoke digital-asset statutes — though commencement is deferred to April 2027, so it lags

Switzerland's in-force DLT Act and the

EU's applicable MiCA regime on operational maturity. On tokenized-issuance activity it remains less advanced than

Japan's established ERTR framework and

Hong Kong's active tokenized bond program. The enacted DAP/TCP framework provides clearer categories than

South Korea's pending legislation, and Project Acacia gives Australia a credible wholesale-settlement experimentation track.

10. Verification Notes

Corrections made this pass (per Correction Protocol):

1. Legislation name corrected from "Treasury Laws Amendment (Regulating Digital Asset, and Tokenised Custody, Platforms) Bill 2025" to the actual enacted Corporations Amendment (Digital Assets Framework) Act 2026 (Act No. 38 of 2026).
2. Status corrected from "exposure draft / proposed bill" to enacted (passed 1 April 2026, Royal Assent 8 April 2026, commences 9 April 2027).
3. Exemption threshold corrected: was "AUD 10 million annually" only; added the per-customer cap of AUD 5,000 (both conditions apply).
4. Comparative/assessment language updated to reflect Australia now having enacted (not pending) bespoke legislation.

Last verified: 4 June 2026

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Related coverage

Australia in other research domains:

• CBDC Frameworks
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• DeFi Regulation & Liability Frameworks
• Digital Asset Insurance & Risk Transfer
• Digital Asset License Map
• Digital Asset Taxation
• Institutional Crypto Custody Regulations
• NFT & Digital Collectibles Regulations
• Payment Services & Crypto Payment Regulation
• Stablecoin Regulations & License Regimes

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