The Corporations Amendment (Digital Assets Framework) Bill receives Royal Assent
- Michael Lukman
- Apr 13
- 4 min read
The much-anticipated Corporations Amendment (Digital Assets Framework) Bill 2025 received Royal Assent on 8 April 2026. This Gen Advisory article summarises the DAF Legislation's key requirements and implications for DAP and TCP operators..
Key points: What you need to know
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Background
On 1 April 2026, the highly anticipated Corporations Amendment (Digital Assets Framework) Bill 2025 ("DAF Legislation") passed both Houses of Australian Parliament. On 8 April 2026, the DAF Legislation received Royal Assent.
Key aspects of the new DAF legislation
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The DAF Legislation introduces two new categories of financial products under the Corporations Act:
"Digital Asset Platforms (DAP)" - defined as a facility under which an operator: possesses one or more digital tokens ("known as the underlying assets") for or on behalf of another person; and
"Tokenised Custody Platforms (TCP)": - defined as a facility under which an operator: (i) identifies and holds one or more assets other than money ("underlying assets'); (ii) issues a single digital token for each underlying asset, posession of which grants the holder the right to redeem or direct the delivery of that asset; and (iii) acts on behalf of the token holder, often as trustee or bailee, and may also manage the asset according to the holder’s instructions.
Note regarding above DAP and TCP definitions- Priority with respect to MISs: If a facility is either a DAP or TCP and also meets the definition of an "MIS" : The facility is regulated as an MIS (unless a regulatory exclusion applies)..
DAP and TCP operators will be required to hold an Australian Financial Services Licence (AFSL) and comply with the general obligations that apply to all AFSL holders.
DAP and TCP operators will also need to comply with additional obligations, including:
Minimum standards relating to asset-holding, transactions and settlement functions - to be developed by ASIC;
Platform rules govering the activities or conduct of persons relating to the DAP and TCAP; and
Tailored disclosure obligations - including the requirement to provide clients with a DAP/TCP Guide instead of a PDS.
Licensing exemptions
The DAF Legislation contains two categories of exemptions: (1) a "low value-exemption; and (ii) an "incidental activity" exemption.
"Low-value exemption: Issuers of DAPs and TCPs are exempt from holding an AFSL where: (i) the total market value of transactions across all an operator’s platforms is less than $10 million over a 12-month period; and (ii) the operator holds less than A$5,000 in underlying assets per customer.
"Insignificant part of business" exemption: Issuers of DAPs and TCPs are exempt from holding an AFSL where:
(i) the service consists merely of either: (a) arranging for another person to use a DAP or TCP; or (b) advising another person about the existence of a DAP or TCP, OR
(ii) the service provider does so in the ordinary course of business and such services are not a significant part of their business.
Transition period
The DAF Legislation will commence on 9 April 2027 - i.e 12 months from the date Royal Assent was received (8 April 2026).
For the first 6 months from commencement ("the transition period"), the DAP/TCP amendments will not apply to the provision of a DAP/TCP financial service if the relevant provider does not yet hold an AFSL with an authorisation for that service. If, however, the provider has made an AFSL application to ASIC during this 6-month transition period: The DAP/TCP amendments will not apply to the provision of the DAP/TCP financial service until the day after ASIC makes a decision regarding the AFSL application.
Next steps
With the foundational DAF legislation now in place, regulatory attention will now turn to practical implementation matters such as: AFS licensing pathways; transitional arrangements; operational requirements etc.
Gen Advisory will continue to monitor ASIC's and Treasury's upcoming regulatory guidance on these matters and keep our clients abreast of developments.
If you're a business involved in the delivery of digital asset-related products or services and wish to have an in-depth discussion regarding how the DCP/TCP-related reforms impact you: Please reach out to the Gen Advisory team.
This article is of a general nature and not intended to address the objectives, financial situation or needs of any particular individual or entity. It is provided for information purposes only and does not constitute professional or legal advice.
Should you have any questions regarding this article or the DAP/TCP reforms and how they impact your business, please get in touch with the Gen Advisory team.
