The Australian financial regulatory authorities have identified significant weaknesses in digital asset regulation as a major regulatory challenge that needs to be addressed. By 2026, ASIC (Australian Securities and Investments Commission) will focus on strengthening the framework to address these gaps. The government is developing the "2025 Digital Asset Framework Amendment Bill" which will require all trading platform operators and custody service providers for cryptocurrencies to hold an Australian Financial Services License (AFSL). This move is intended to enhance consumer protection and strengthen oversight of the rapidly growing sector. These regulatory changes are expected to reduce operational risks and provide legal certainty for the crypto industry in Australia.