The New Regulatory Reality for Crypto

The draft legislation announced by the Australian government is a game-changer. Previously, crypto exchanges only needed to be registered with AUSTRAC for anti-money laundering purposes. The new laws require them to obtain an AFSL from the Australian Securities and Investments Commission (ASIC). This means they will be held to the same high standards as traditional financial service providers.

The key implications for the market are:

• Consolidation: The law firm Thomson Geer's partner, Liam Hennessy, noted that compliance costs will be "crippling for smaller players," leading to a wave of consolidation. This will create a safer, more institutional-friendly environment.

• Professionalism: Platforms will need to act "efficiently, honestly and fairly," with penalties for misleading conduct. This forces a move away from the "Wild West" image of crypto.

• Custody and Security: The framework will regulate "digital asset platforms" and "tokenised custody platforms," highlighting the importance of secure and compliant asset holding.

This regulatory shift directly impacts how professionals can, and should, manage their clients' digital assets. The days of using unregulated, overseas exchanges with flimsy security and record-keeping are over.

Why the New Laws Make Wealth99 a key Solution

For Estate Lawyers, SMSF Accountants, and Auditors, the new AFSL requirements make a platform like Wealth99 not just a good option, but a necessary one. Wealth99 already operates with a strong compliance and security focus that aligns perfectly with the new regulations by already having Institutional Custody with Zodia along with an AFSL.

For Estate Lawyers: ⚖️

Estate lawyers face a nightmare when it comes to digital assets. They are often not explicitly mentioned in wills, and without a reliable platform, proving ownership and accessing the assets after a client's death is nearly impossible.

Crypto Risks for Estate Lawyers:

• Verifiable Ownership: Wealth99's institutional-grade security and robust record-keeping provide the clear, verifiable evidence of asset ownership that a court requires.

• Succession Planning: The platform enables lawyers to create a clear succession plan for digital assets, preventing them from being lost in the blockchain ether.

For SMSF Accountants and Auditors: 📈

The ATO has been clear that SMSF trustees are responsible for maintaining proper records and security for their assets. Crypto investments have been a major point of non-compliance.

Crypto Risks for Accountants and Auditors:

• Audit-Ready Reporting: Wealth99 offers seamless transaction history exports and valuation records. This automates a significant part of the audit process, saving time and reducing the risk of a qualified audit report. The platform's commitment to compliance ensures that assets are held in the SMSF's name, addressing a major ATO concern.

• Institutional-Grade Custody: The new laws mandate a focus on compliant custody. Wealth99 holds assets with insured, licensed custodians, meeting the high standards required for SMSFs and providing peace of mind to both trustees and auditors.

Looking Ahead

The Australian Financial Review article on the 25th September 2025 signals that crypto is no longer a fringe asset class; it's now firmly embedded in the financial system. The new AFSL laws will weed out the bad actors and legitimize the good ones. This creates a powerful opportunity for professionals to confidently integrate digital assets into their practice.

Wealth99 has been anticipating this shift for years. Its platform is built from the ground up to provide the security, compliance, and professional support needed to navigate this new regulatory environment. For any professional serious about offering a comprehensive service to their clients, aligning with a licensed, audit-friendly, and secure platform like Wealth99 is the only logical step.

Let's have a conversation, book a time in my Darren's Calendar HERE