Australia Senate Panel Backs Crypto Framework in Latest Regulatory Push

An Australian Senate committee has released its report on the government’s proposed regulatory framework for digital assets, in support of legislation that would bring crypto platforms and custody services under the country’s financial services regime.

The Senate Economic Legislation Committee said the bill is a step toward modernizing oversight of digital assets, a sector that lawmakers say is growing rapidly but remains unevenly regulated.

The move builds on previous moves by Australian regulators, including mandatory AUSTRAC registration for crypto exchanges and Treasury Department consultations aimed at bringing digital asset platforms into the fold of the country’s financial services industry.

The suggested Corporations Amendment (Digital Assets Framework) Bill 2025, published on Sunday, would amend the Corporations Act and the ASIC Act to create a licensing and compliance regime for companies that own or manage digital tokens on behalf of customers.

Under this framework, operators of digital asset platforms and tokenized custody services would generally be required to hold an Australian Financial Services License, meet asset protection standards and meet disclosure requirements when onboarding retail customers.

Lawmakers say the changes are intended to close regulatory gaps that currently allow companies to hold large amounts of customer digital assets without the safeguards required in the traditional financial world.

The legislation defines core concepts such as ‘digital tokens’, ‘digital asset platforms’ and ‘tokenized custody platforms’, with the aim of bringing intermediaries dealing with customer assets under existing financial services legislation rather than regulating blockchain technology itself.

If introduced, the regime would include a six-month transition period for providers who do not already hold an Australian financial services license.

Industry groups generally welcomed the move towards regulatory clarity. Kate Cooper, CEO of OKX Australia, said Declutter that clearer rules can increase economic profits.

“Clear clarity could be the basis for a significant increase in productivity standards in Australia,” Cooper said, citing research from the Digital Finance Cooperative Research Center and the Digital Economy Council of Australia, which estimates that innovation in digital finance could generate up to $24 billion a year, or about 1% of GDP, for the economy.

She added that digital asset platforms will support stronger safeguards around how customer assets are held, while Australian businesses will have access to global blockchain technology within a regulated framework.

The bill will now move through the next stages of the parliamentary process as lawmakers consider final approval of Australia’s first comprehensive regulatory framework for digital asset platforms.