This training module is only for internal training of authorised representatives of AFS licensees. It is for internal educational purposes only.
Confidential: It may not be used, disclosed or copied without the express prior consent of Fame Capital Pty Limited Pty Ltd (ACN 650 001 808). Do not copy it for personal use. Do not copy or disclose it to clients.
Data attribution: The data in this training module is based on a number of public sources, current to the time of collation. It has not been independently verified. The data is likely to change since the time of release of this training module. It may be updated from time to time; however, you should not rely on it.
Currencies: Amounts in currencies are denominated in AUD unless otherwise shown. Currency exchange rates will continue to fluctuate so the amounts in AUD will be affected by those FX changes.
AI: All content has been reviewed and approved by Fame Capital. AI has been used to a limited extent, improving content and structure.
© 2026 Fame Capital Pty Limited Pty Ltd (ACN 650 001 808). All rights reserved.
Digital assets have grown from a niche technology experiment to a multi-trillion dollar global market. The scale of adoption — and the pace of growth — makes this an asset class that advisors cannot afford to ignore.
Growth from 2020 to 2026 (millions of users) — Source: Triple-A / DemandSage
% of adults who own or have owned crypto — Source: IRCI 2019–2026
Share of total market capitalisation — Source: CoinGecko / Fibo-Crypto
One in three Australians (33%) now own digital assets, with crypto awareness at 95% (IRCI 2026). Bitcoin remains the dominant holding (71% of crypto investors), and 67% of Australians view Bitcoin as a legitimate financial asset. The ATO has data matching for 1.2 million Australians who held crypto (Ritz Herald), and 53% of people aged 25–34 now own cryptocurrency — making this the most active demographic (Independent Reserve). 51% of Australians say clearer regulation would increase their confidence in the space.
Adding digital assets as an advised asset class opens new opportunities for client engagement, risk management, and business growth.
Many clients already hold crypto. Providing advisory oversight allows you to bring these assets under your purview and offer professional guidance on positions they've already taken. Estate planning and wealth transitions can also be supported by advisors.
Proper advice helps clients understand volatility, position sizing, and the risk/return profile of digital assets within their broader portfolio context.
Digital assets offer low correlation to traditional markets. Advising on allocation strategies enables clients to diversify beyond equities, bonds, and property.
Position your practice at the forefront of a growing sector. Early movers capture client trust and market share as digital asset adoption accelerates.
Tokens are units of value issued on blockchains that can represent a wide range of rights or utilities — they are not always digital assets in a legal or regulatory sense. Protocols are the underlying rules governing how tokens are created, transferred, and managed. Understanding the distinction between tokens and digital assets, and the relationship between tokens and their protocols, is essential for navigating the regulatory and investment landscape.
DeFi protocols facilitate investment activity — including yield generation, liquidity provision, staking, and synthetic exposure — rather than being investments in themselves. Under Australian law, a DeFi protocol may constitute a managed investment scheme depending on what it does, making it a regulated financial product. The investment return comes from the activities the DeFi protocol performs, not from an investment "in DeFi." Advisors should understand this distinction to avoid miscuing what DeFi does versus what it could be classified as.
72% want to invest more in crypto, but fewer than 9% feel confident advising on it — Source: IRCI / Bitcoin Magazine
Digital assets are not going away — they are only going to grow. This section builds foundational understanding of the key asset types and technologies driving the space.
A digital asset is any form of digital content or representation of value that is recorded on a distributed ledger. This includes cryptocurrencies, tokens, NFTs, and digital representations of traditional assets. They enable peer-to-peer ownership, transfer, and programmability without requiring centralised intermediaries.
The first and most well-known cryptocurrency. Bitcoin operates as a decentralised, peer-to-peer digital currency with a fixed supply of 21 million coins. It serves as both a store of value ("digital gold") and a medium of exchange, underpinned by proof-of-work consensus and the most secure blockchain network in existence.
A programmable blockchain platform that extends beyond simple value transfer. Ethereum introduced smart contracts — self-executing code that enables decentralised applications (dApps), tokenisation, and complex financial instruments. It is the foundation for most DeFi protocols, NFT marketplaces, and emerging Web3 infrastructure.
Beyond Bitcoin and Ethereum, a growing ecosystem of alternative Layer 1 blockchains serve different use cases. Solana (SOL) is built for high-speed, low-cost transactions and has become a hub for DeFi and NFT activity. XRP (Ripple) focuses on cross-border payments and institutional settlement. Cardano (ADA) emphasises peer-reviewed research and formal verification for smart contracts. Polkadot (DOT) enables interoperability between different blockchains. Each protocol issues its own native token, used for transaction fees, governance, and staking — and many support their own ecosystems of additional tokens built on top of them.
DeFi is a category of financial services built on blockchain networks that operate without traditional intermediaries such as banks or brokers. It includes lending, borrowing, trading, insurance, and yield generation — all governed by transparent, open-source smart contracts accessible to anyone.
NFTs represent unique, verifiable ownership of digital or physical items on the blockchain. While initially associated with art and collectibles, NFTs are increasingly used for real estate tokenisation, identity verification, intellectual property rights, event ticketing, and provenance tracking across industries.
Digital assets are an expanding, maturing asset class. Advisors who develop competency now position themselves — and their clients — ahead of a structural shift in how value is created, stored, and transferred globally.
The technology layer that underpins every digital asset. Understanding blockchain architecture is essential context for advisory conversations.
Blockchain transactions are validated, grouped into blocks, and appended to a chain through consensus mechanisms. This process creates an immutable, transparent record of every transaction — the core trust layer that removes the need for intermediaries.
A "chain" is a sequence of blocks linked together cryptographically — each block contains a set of validated transactions and a reference to the previous block, making the record tamper-resistant and verifiable. Different blockchains serve different purposes: Layer 1 chains (Bitcoin, Ethereum, Solana) provide base-layer security and consensus. Layer 2 solutions build on top of Layer 1 for greater speed and lower cost. Cross-chain bridges enable assets to move between ecosystems.
Wallets are the interface through which users interact with blockchains. They can be custodial (managed by a third party) or non-custodial (self-managed). Wallets store the cryptographic keys needed to authorise transactions — not the assets themselves.
Public keys serve as your blockchain address — a unique identifier that others can use to send assets to you. Private keys are the secret credential that authorises transactions. The fundamental rule: whoever controls the private keys controls the assets. This is why custody solutions matter.
Smart contracts are self-executing programs deployed on blockchains. They automate agreements, enforce rules, and power everything from DeFi lending to NFT royalties. Auditing and understanding smart contract risk is a key part of due diligence.
The blockchain industry uses "transaction" to refer to an instruction executed on the blockchain. The blockchain is both the means of making a blockchain transaction happen and the ledger recording them. This simplicity drives exciting solutions across a wide variety of industry uses — especially in traditional and emerging investment applications. Be aware that "transaction" also retains its conventional meaning in financial services (a deal, a contract, a trade), which is quite different. This is a common source of confusion for newcomers to the space.
Understanding the risks of self-custody — and why a regulated platform like Fame addresses them.
If you lose your private keys, you lose access to your assets permanently. There is no password reset, no customer support, and no recovery process. Lost keys mean lost assets — with no recourse.
If the device holding your wallet is lost, stolen, or damaged, accessing your assets may become impossible — particularly if backup seed phrases have not been securely stored separately.
Hardware failures, software corruption, or malware can render wallet data inaccessible. Without proper backups, device corruption can result in the permanent loss of digital assets.
A "wrench attack" refers to physical coercion — being forced to hand over private keys or transfer assets under duress. Self-custody means you are personally responsible for physical security, making individuals potential targets.
Centralised exchanges can go out of business, be hacked, or freeze withdrawals. Assets held on an exchange are not legally yours — you are an unsecured creditor if the exchange becomes insolvent.
Client assets on the Fame platform are held within a Managed Investment Scheme — legally segregated, beneficially owned by the client, and protected by the Trustee's fiduciary obligations. This is a fundamentally different structure to holding assets on an exchange.
Private keys are managed through institutional-grade custody infrastructure with multi-layered security controls. Clients are not exposed to the risks of managing their own keys — the platform handles this with the highest standards of protection.
Because keys and assets are held in regulated custody — not on a personal device or exchange account — they cannot be stolen through physical theft, device compromise, or coercion of the individual client.
Keys and access to assets can be managed during the inheritance process. Unlike self-custody — where assets can be permanently lost if keys are not passed on — the Fame platform ensures continuity and proper transfer of digital assets as part of estate planning.
Global regulation of digital assets is evolving rapidly. Regulatory arbitrage is being replaced by hyper-compliance and a multi-tier system, with financial centres competing for growth.
Key focus areas include exchanges (centralised), crypto custodians, and stablecoins. Under what circumstances a token is a financial product remains a critical question in securities law globally.
Anti-money laundering and counter-financing of terrorism requirements are being applied consistently across jurisdictions. Know-your-customer processes are a baseline expectation for all crypto service providers.
Governments are balancing three goals: consumer protection, combating anti-money laundering and terrorist financing, and supporting technology innovation. The tension between these creates different approaches by jurisdiction.
| Jurisdiction | Framework | Status | Key Detail |
|---|---|---|---|
| United States | Shifting to structured regulation | Active Reform | Pro-crypto stance from 2025 — ending "regulation by enforcement." Bipartisan crypto market structure law anticipated in 2026 (Goldman Sachs). 401(k)s can now hold crypto. Key court cases (Coinbase, Ripple) providing clarity. |
| Europe (EU) | MiCA (Markets in Crypto-Assets) | Implemented | First comprehensive digital asset framework (effective 2024). CASP licensing deadline July 2026. Minimum capital: €50K–€150K (Fibo-Crypto). Compliance costs high — 75%+ of legacy VASPs may lose status. |
| United Kingdom | Broad crypto framework in progress | In Development | HM Treasury confirmed broad range of crypto and stablecoin activities will be brought into the regulated financial services perimeter. Advancing extensive regulatory framework. |
| Singapore | Payment Services Act | Operational | Early-mover advantage with crypto-specific regulation. Stablecoin framework introduced. Designed specifically for digital asset activities. |
| UAE | Explicit regulation | Operational | No prohibitions on cryptocurrencies. Both implicitly and explicitly regulated. Positioning as a non-USA/UK hub for global crypto activity. |
| Australia | Existing AFSL + AUSTRAC | Evolving | Treasury consulting on DCE, custodian, and stablecoin licensing. Best-practice firms (e.g. Fame Capital) operate under existing AFSL framework. Specific exemptions unlikely before 2026 with a 12–24 month transition. |
Sources: PwC Regulatory Report, Ashurst, Thomson Reuters, Fibo-Crypto
Regulatory uncertainty is being replaced by a multi-tier compliance system
Fame facilitates conventional advisor behaviours. The platform simplifies a complex regulatory environment so advisors can focus on doing their jobs.
| Structure | Regulation | Clarity | Advisor Confidence |
|---|---|---|---|
| Individual (DIY) | None — self-directed | Unregulated | No advisory framework |
| DCE (Digital Currency Exchange) | AUSTRAC registered | Exchange Only | Limited oversight |
| Managed Funds | Unclear / black box | Ambiguous | Uncertain compliance |
| Exchange Traded Fund | Regulated by the exchange | Exchange Regulated | Indirect exposure only |
| Fame Platform (MIS) | Managed Investment Scheme — highest level | Fully Regulated | Full advisory confidence |
Fame offers a Managed Investment Scheme (MIS) structure — not just an exchange or ETF — providing direct crypto exposure and managed product within a fully regulated framework.
The Fame MIS is a regulated financial product from the outset. While native coins (BTC, ETH etc.) are not yet themselves regulated, the Fame MIS structure ensures that access to underlying protocols and digital assets occurs within a compliant framework.
As the regulatory landscape evolves, the platform's MIS structure positions advisors ahead of upcoming requirements — not scrambling to catch up. It's the same as any other managed investment scheme.
Available as wholesale product and designed to be placed on Approved Product Lists, giving advisors a familiar, compliant pathway to include digital assets in client portfolios.
As a regulated financial product, the Fame MIS is more likely to be approved on APLs and more likely to be covered by professional indemnity insurance — key requirements for responsible advisory practice.
Fame provides the complete transaction record for every client, facilitating full GST and other tax compliance. No more scrambling for data at tax time — it's all captured within the platform.
An exchange traded fund is regulated by the exchange. Fame offers something fundamentally different from other providers: an accounts service as a managed investment scheme with custody, internalised regulated managed fund classes for yield and dealing for direct digital assets (including crypto and managed products) — with the highest financial services regulation and licensing possible in Australia. It's a financial product from day one, simplifying the regulatory quagmire so advisors can do what they do best.
Before offering digital asset products to clients, financial services firms must review key functions in their business to ensure they meet their regulatory obligations.
Internal accreditation programmes and continuing education to ensure all staff are competent in digital asset products, risks, and regulatory requirements.
Documented policies covering onboarding, AML/CTF, trading, risk management, dispute resolution, and acceptable use — specific to digital assets.
Oversight from directors and responsible managers, with transaction monitoring, compliance reporting, and real-time risk management.
Meeting all AUSTRAC, ASIC, and AFSL reporting obligations. Understanding how digital assets intersect with existing licence conditions.
Product disclosure, financial services law compliance
Advisor training and internal and external requirements (suitability, interests of client, fees disclosure)
Compliance plan, privacy, anti-bribery
Risk framework, customer risk rating
Transaction monitoring, sanctions screening
Cyber security, BCP/DR, change control
CGT treatment, GST, reporting to ATO
Unit pricing, minting/burning, accounting
Given the rapidly evolving nature of crypto products being offered, it is critically important that organisations have an informed view on the products made available to clients. The Fame platform's comprehensive policy framework — spanning risk management, operations, trading, compliance, technology, and AML/CTF — provides a model for the standards licensees should be meeting.
How the Fame platform streamlines the advisor experience — from onboarding through to ongoing portfolio management and custody.
A streamlined onboarding journey designed for financial advisors. The platform guides you through account creation, compliance checks, dealer group integration, and client setup — enabling you to be operational quickly.
Real-time data feeds provide portfolio-level visibility across all client digital asset holdings. Integrate with existing reporting tools and gain the same depth of insight you expect from traditional managed investments.
The platform supports dealer group structures, enabling compliance oversight, adviser management, and centralised reporting. Designed to slot into existing dealer group workflows without disruption.
The platform offers the opportunity to custodise client crypto holdings within a secure, regulated environment. Client assets are held beneficially and solely for the client, segregated from the Trustee and from other clients.
The Trustee is an AFSL holder and is externally audited. Fiduciary duties include acting in the best interests of clients with no principal trading. All client investments are held in legally-segregated accounts as a Managed Investment Scheme.
Test your understanding of the training material. Select the best answer for each question. You'll receive immediate feedback after each response.
0 / 10 answered