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Australia is moving closer to a formal regulatory regime for cryptocurrency platforms as a Senate committee recommends the passage of legislation that would bring exchanges and digital-asset custody providers under existing financial laws. The Senate Economics Legislation Committee has spent weeks examining the Corporations Amendment (Digital Assets Framework) Bill 2025, which seeks to create a legal framework for businesses managing tokens on behalf of customers.
The report, released on 16 Mar, describes the bill as a substantial improvement to consumer protections within the local ecosystem.
The bill introduces new definitions for digital tokens and tokenized custody platforms, subjecting them to financial services licensing and operational standards. If enacted, operators would be required to obtain an Australian Financial Services Licence (AFSL) and comply with disclosure and transaction standards similar to those governing traditional financial intermediaries. This shift signals that the sector regulatory home is likely to remain within established financial frameworks rather than a bespoke crypto rulebook.
Focus on financial intermediaries
The proposed regime reflects a regulatory view that intermediaries represent the primary source of risk in digital-asset markets. Assistant Treasurer and Minister for Financial Services Daniel Mulino introduced the bill by noting that digital assets are reshaping finance, yet businesses currently hold unlimited values of customer crypto without traditional safeguards. The legislation aims to address this gap by regulating the activities of platforms and custody providers rather than the underlying blockchain technology itself.
This approach aligns with recent commentary suggesting that most crypto activities mirror longstanding financial functions such as payments and risk management. By focusing on the economic role of the service rather than the technology involved, the bill attempts to maintain technological neutrality while providing meaningful safeguards. Industry feedback during the inquiry phase was broadly supportive of clearer regulation, though some groups warned that broad definitions of possession and control could inadvertently capture software developers or noncustodial infrastructure.
Closer regulatory scrutiny in 2026
The push for legislation comes amid growing concern from the Australian Securities and Investments Commission (ASIC) regarding risks at the regulatory perimeter. In its Key Issues Outlook 2026, the regulator identified digital assets, stablecoins and AI-driven financial services as potential threats to market integrity. ASIC has prioritized maintaining oversight of these emerging participants to prevent unlicensed advice and misleading conduct.
As the Senate reviews the bill, the direction of Australian policy is clear. If the legislation passes, affected firms will likely receive a six-month transition period to obtain the necessary authorizations and align their operations with the new standards. For an industry that has long operated in a grey area, the move represents a final step toward integration with the country's broader financial system.