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On 1 April 2026, Australia's Parliament passed the Corporations Amendment (Digital Assets Framework) Bill 2025 — the country's first comprehensive regulatory framework for digital assets. For remittance providers who use cryptocurrency or blockchain-based settlement rails, this is arguably the most consequential piece of legislation since AUSTRAC's digital currency exchange (DCE) registration regime launched in 2018.
The Bill doesn't just affect crypto exchanges. It reaches into remittance infrastructure — the settlement layers, custody arrangements, and on-ramp/off-ramp services that a growing number of money transfer operators rely on every day.
Here's what changed, what it means for the remittance sector, and what operators should do about it.
What the Bill Actually Does
The Digital Assets Framework Bill creates two new categories of regulated financial products:
- Digital asset platforms — exchanges, brokers, and trading venues that facilitate the buying, selling, or swapping of digital assets
- Tokenised custody platforms — services that hold digital assets on behalf of customers
Both categories now fall under the Australian Securities and Investments Commission (ASIC) and require an Australian Financial Services Licence (AFSL) to operate. This is the same licensing regime that governs stockbrokers, managed funds, and financial advisers.
The Bill was introduced by Assistant Treasurer and Financial Services Minister Daniel Mulino on 26 November 2025. It cleared the Senate Economics Legislation Committee in mid-March 2026 and passed both houses by 1 April 2026.
Who Is Captured — and Who Isn't
Captured
- Centralised exchanges (CEXs) operating in Australia
- Custody providers holding crypto on behalf of clients
- Platforms offering tokenised real-world assets
- Crypto brokers and OTC desks
Exempt
- Non-custodial wallets — if the operator never holds customer funds, the AFSL requirement does not apply
- Small-scale providers — platforms with annual transaction volumes below AUD 10 million are exempt from the licensing requirement [VERIFY: exact threshold and conditions]
- Pure software providers — developers of blockchain protocols, smart contracts, or decentralised applications where no custodial relationship exists
The Grey Area: Remittance Providers Using Crypto Settlement
This is where it gets interesting for the remittance industry. If a remittance operator:
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Accepts fiat from a customer and delivers fiat to a recipient, using crypto only as an internal settlement mechanism (e.g., buying XRP, transferring it cross-border, and selling it at the other end), the operator likely does not need an AFSL under this Bill — because they are not operating a digital asset platform or custody service for the customer.
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Accepts crypto from a customer or delivers crypto to a recipient, the operator is almost certainly providing a designated service under the new framework and will need an AFSL.
The critical distinction is whether the customer's interaction involves digital assets. Back-end settlement using blockchain rails, where the customer only sees fiat-to-fiat, sits in a different regulatory position than customer-facing crypto services.
That said, the operator's infrastructure partners — the exchanges and OTC desks used for on-ramping and off-ramping — will now need their own AFSLs. This is actually positive for remittance providers: it means the platforms handling settlement will be subject to stricter custody, capital, and disclosure requirements.
The AUSTRAC–ASIC Overlap
Here's the compliance wrinkle that every remittance operator using crypto rails needs to understand: the AFSL requirement under this Bill does not replace AUSTRAC registration.
A remittance provider that uses crypto settlement may need:
- AUSTRAC registration as a remittance service provider (and potentially as a DCE provider, depending on the service model)
- An AFSL from ASIC if their service model involves operating a digital asset platform or custody service
These are separate obligations, administered by separate regulators, with separate compliance frameworks. AUSTRAC focuses on anti-money laundering and counter-terrorism financing (AML/CTF). ASIC focuses on market conduct, consumer protection, and financial services regulation.
Operators cannot assume that holding one licence covers them for the other. The prudent approach is to map each designated service against both regimes.
Ripple's Move Signals the Direction of Travel
The timing of Ripple's announcement in March 2026 — that it would acquire BC Payments Australia Pty Ltd to secure an AFSL — is no coincidence. Ripple, whose On-Demand Liquidity (ODL) service is used by Australian remittance operators including Hai Ha Money Transfer, Novatti Group, Flash Payments, and Independent Reserve, is positioning itself to operate as a fully licensed infrastructure provider under the new framework.
Ripple's APAC payments volume nearly doubled year-on-year in 2025. The company now holds more than 75 regulatory licences globally. Its decision to secure an AFSL in Australia signals that blockchain-based settlement for remittance is not a fringe use case — it's becoming regulated, institutional infrastructure.
For remittance operators using Ripple's services, this means the platform they rely on for settlement will soon be subject to ASIC's oversight on top of AUSTRAC's. That's an additional layer of regulatory assurance — but it also means that any disruption to Ripple's licensing process could have downstream effects on settlement availability.
The De-Banking Problem Isn't Solved Yet
One of the arguments in favour of the Digital Assets Framework Bill was that it would help address the persistent de-banking of crypto firms. Without clear regulatory status, banks have routinely closed accounts for crypto businesses, citing unquantifiable risk.
The new AFSL requirement should help — a licensed entity is harder to de-bank than an unregulated one. But Stand with Crypto Australia, the advocacy group launched by Coinbase, has been clear that de-banking "remains a serious and unresolved problem for crypto users across Australia."
According to a 2025 survey, nearly one in five Australians (19.3%) report their bank has delayed or blocked transfers to crypto exchanges. For remittance operators, de-banking risk extends beyond crypto: the sector has long struggled with banking access regardless of whether blockchain is involved.
The Albanese Government has pledged to work with major banks to address de-banking as part of its crypto reform agenda. Whether that translates into practical improvements for remittance operators remains to be seen.
Is Crypto-Based Remittance More or Less Attractive Now?
The answer is: more attractive in the medium term, more complex in the short term.
More attractive because:
- Settlement infrastructure providers (exchanges, OTC desks, custody platforms) will be regulated and audited — reducing counterparty risk
- Regulatory clarity removes one of the biggest barriers to institutional adoption of blockchain settlement
- Licensed crypto platforms will have stronger banking relationships, potentially easing the de-banking problem for their remittance clients
- The Australian Dollar stablecoin (AUDD) on XRP Ledger creates new possibilities for on-chain AUD settlement
More complex because:
- Operators need to map their service model against two regulatory regimes (AUSTRAC and ASIC)
- Infrastructure partners may face a compliance transition period — some smaller exchanges may exit the market rather than obtain an AFSL
- The regulatory boundary between fiat-to-fiat remittance using crypto rails and customer-facing crypto services is not yet fully tested
What To Do Now
Remittance operators using or considering crypto-based settlement should take these steps:
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Audit your service model. Map every point where a digital asset is created, transferred, held, or converted. Determine whether your model involves customer-facing digital asset services or purely back-end settlement.
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Check your infrastructure partners. Confirm that the exchanges, OTC desks, and custody providers you use are either applying for an AFSL or have a clear plan to comply. Ask for timelines.
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Review your AUSTRAC registration. Ensure your registration accurately reflects all designated services, including any DCE services. If you added crypto rails after your initial registration, update your registration.
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Assess the dual-regime overlap. If your service model may trigger both AUSTRAC and ASIC obligations, get legal advice now. The cost of a compliance review is a fraction of the cost of operating without the correct licence.
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Monitor ASIC's implementation guidance. The Bill is passed, but the detailed rules — including transition periods, application processes, and specific exemption criteria — will be developed through ASIC regulatory guides in the coming months.
Key Dates
| Date | Event |
|---|---|
| 26 November 2025 | Bill introduced to Parliament |
| 16 March 2026 | Senate Economics Legislation Committee recommendation |
| 1 April 2026 | Bill passed both houses |
| TBC (expected H2 2026) | ASIC implementation rules and transition guidance |
| TBC | AFSL application process opens for digital asset platforms |
The Digital Assets Framework Bill draws a clear line: if a business operates a crypto exchange or holds crypto for customers in Australia, it needs an AFSL. For remittance providers, the immediate question is whether their settlement model crosses that line — and whether their infrastructure partners will be ready when the rules take effect.
Understanding your regulatory obligations? Explore the compliance guides for AUSTRAC requirements, or build your AML/CTF program free →