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AFSL Licensing Mandate

Definition ∞ An AFSL Licensing Mandate requires financial service providers in Australia to hold an Australian Financial Services License. This license ensures compliance with regulatory standards for offering financial products, including certain digital assets. It establishes a framework for consumer protection and market integrity within the financial sector. The mandate specifies obligations regarding disclosure, conduct, and dispute resolution mechanisms.
Context ∞ The application of AFSL Licensing Mandate to digital asset activities is a current regulatory discussion point in Australia. Regulators are evaluating how existing financial services laws extend to cryptocurrency exchanges, custody providers, and other digital asset businesses. This regulatory clarification aims to provide certainty for market participants and safeguard retail investors in the evolving digital economy.

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Australian Treasury Mandates Financial Services Licensing for Digital Asset Platforms

The new Australian Financial Services License mandate for DAPs and TCPs creates a robust prudential framework, fundamentally altering compliance obligations for client-facing digital asset custodians.