Coinbase has received an Australian Financial Services Licence (AFSL) from the Australian Securities and Investments Commission, which is a regulatory achievement that aligns with sweeping legislative changes in the country’s digital asset sector.
The license, granted to Coinbase Australia Pty Ltd, allows the company to operate under the same standards that govern traditional financial services providers. The approval arrives just days after Australia’s parliament passed the Corporations Amendment (Digital Assets Framework) Bill 2025, which will require crypto platforms to obtain such licenses once it comes into force.
Coinbase confirmed that the AFSL enables it to introduce new financial products in Australia, including crypto and equity perpetuals, with futures and options expected to follow. The company stated in its press release, published on April 7, 2026, that it plans to expand into stock trading, payments, and other traditional finance services through its platform.
Regulatory shift sets new baseline
The new law introduces a formal licensing regime for digital asset platforms and custody providers. Businesses that meet certain thresholds must obtain an AFSL and comply with obligations around governance, disclosure, and consumer protection.
Authorities require companies to operate in a fair, efficient, and honest manner. Firms must also provide transparency on how customer assets are held and implement systems for risk management. The framework places crypto operators under rules similar to those applied to brokers and fund managers.
The legislation does not define digital assets as a separate legal category. Instead, it integrates them into existing legal frameworks that cover taxation, property rights, and insolvency. A transition period of 12 months will apply after royal assent, which gives companies time to adjust.
The shift has been described as long overdue. Kate Cooper said in the statement,
"For the first time, we have a clear regulatory foundation that recognizes digital assets as part of the future of financial market infrastructure, not as a fringe innovation, but as a legitimate and growing asset class".
Years of groundwork behind the license
Coinbase’s entry into the licensed environment reflects a multi-year effort in Australia. The company first entered the market in 2016 and established a local entity in 2022, with registration under AUSTRAC. It introduced services such as PayID transfers, advanced trading tools, and continuous customer support.
The company also engaged with policymakers and research institutions, including collaboration with RMIT’s Blockchain Innovation Hub. It joined industry groups such as the Digital Economy Council of Australia and contributed to policy discussions on custody, cybersecurity, and digital identity.
Adam Judd will oversee the AFSL. He previously held roles at CommSec and the regulator itself, where he worked on market structure and compliance frameworks.
The company described the license as a “natural next step” and emphasized that it aligns crypto services with established financial standards.
Industry welcomes clarity but flags open issues
The broader crypto sector in Australia has responded with cautious support. John O’Loghlen referred to the legislation as a pivotal moment, asserting that it enhances consumer confidence in the announcement.
"This milestone also comes at a pivotal moment. Australia's Corporations Amendment (Digital Assets Framework) Bill 2025 is bringing crypto platforms under the financial services licensing regime, and we are proud to be among the first to meet this bar."
He also stressed the need for continued reforms, particularly in areas such as stablecoin regulation.
"We look forward to continuing to work alongside ASIC and Treasury to help shape a regulatory environment that protects consumers, fosters innovation, and positions Australia for leadership in the global digital economy."
Advocacy group Stand with Crypto Australia supported the legislation but highlighted unresolved challenges. The group pointed to debanking as an ongoing issue that affects crypto firms’ access to financial services.
The law's scope has raised concerns that broad definitions could extend regulatory obligations to software developers or infrastructure providers, which may require further clarification from regulators.
Competition with traditional finance intensifies
Coinbase stated that the new license will support its broader strategy to compete with traditional financial institutions.
“We're going to compete with traditional financial services on stock trading, payments, and other TradFi products with the speed and execution of crypto,” the company said in its announcement.
The AFSL framework subjects Coinbase to strict conduct and disclosure requirements. This includes safeguards around customer assets and operational transparency. The company said these standards match its long-standing position that regulation benefits both users and the industry.
Australia has emerged as a key market in Coinbase’s global expansion. The company operates in multiple regulated jurisdictions, including the United States, United Kingdom, and Singapore. It views Australia as a strategic entry point into the Asia-Pacific region.
Market enters transition phase
The new law is expected to reshape the local crypto landscape. Of the hundreds of platforms registered with AUSTRAC, only a limited number currently hold ASIC authorization. Many firms will need to upgrade compliance systems or exit the market.
The framework introduces proportional requirements. Smaller platforms with lower transaction volumes may face lighter obligations, while larger operators must meet stricter standards.
The shift reflects a broader move by governments to integrate digital assets into existing financial systems. Australia’s approach focuses on regulating intermediaries rather than the assets themselves, which aims to reduce risks tied to custody and misuse of funds.
For Coinbase, the license creates a foundation to expand services while operating under formal oversight. The next phase will depend on how quickly the industry adapts to the new requirements and how regulators refine the framework in practice.
Gunel Ismayilova
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