An Australian Senate committee has recommended passing legislation that would bring cryptocurrency platforms and digital asset custody providers under the country’s existing financial services regulatory framework.
In a report released Monday, the Senate Economics Legislation Committee said the proposed Corporations Amendment (Digital Assets Framework) Bill 2025 would represent a substantial improvement in the oversight of the digital asset sector.
The bill aims to establish a licensing and compliance regime for companies that operate digital asset platforms or manage tokenized custody services. Rather than regulating the underlying blockchain technology, the framework focuses on firms that hold or manage digital assets on behalf of customers.
Under the proposal, such businesses would be required to operate within Australia’s existing financial services laws, which are governed by the Australian Securities and Investments Commission. Companies operating digital asset platforms would be treated similarly to other financial service providers and would need to obtain an Australian Financial Services Licence to legally provide services.
If the legislation becomes law, firms that currently operate without an AFSL would be given six months to obtain the required authorization and comply with the new regulatory framework.
Lawmakers say the legislation is intended to modernize Australia’s oversight of digital assets as the sector continues to grow rapidly. Despite increasing adoption of cryptocurrencies and blockchain-based services, the regulatory environment has remained fragmented, creating uncertainty for both companies and consumers.
The committee noted that designing effective rules for digital assets is a complex task, particularly when regulators must balance innovation with consumer protection.
According to the report, creating a framework that accurately identifies and manages risks while remaining technology-neutral and compatible with international standards presents a significant challenge.
Despite these difficulties, the committee concluded that the proposed legislation would introduce stronger safeguards for Australian consumers and provide greater regulatory clarity for businesses operating in the digital asset industry.
If adopted, the framework could mark a significant step toward integrating cryptocurrency services into Australia’s mainstream financial regulatory system, aligning the country more closely with other jurisdictions that have already begun implementing structured oversight for digital asset platforms.
