An Australian Senate committee has endorsed proposed crypto legislation. The new bill is aimed at bringing cryptocurrency platforms and custody providers under the country’s financial services regulatory framework. The Senate Economics Legislation Committee announced its support for the Corporations Amendment (Digital Assets Framework) Bill 2025 in a report released on Monday. It highlighted the need to modernize oversight of the continuously growing digital asset sector in the country.
The proposed bill aims to strengthen consumer protection by aligning digital asset businesses with the same regulatory safeguards applied to traditional financial markets.
Licensing and Compliance Requirements
Under the Corporations Amendment (Digital Assets Framework) Bill 2025, companies that manage digital tokens on behalf of customers would be required to operate within Australia’s existing financial services laws. To achieve this, the bill proposes amendments to the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001.
This will create a licensing and compliance regime for digital asset managers. Firms that currently do not hold an Australian Financial Services License (AFSL) would be granted a six-month transition period to obtain authorization and meet the new requirements if the bill becomes law.
Significantly, the framework focuses on regulating service providers rather than the underlying blockchain technology itself. Cryptocurrency exchanges operating in Australia already must register with the Australian Transaction Reports and Analysis Center (Austrac) as digital currency providers before offering exchange services.
Supporters say the bill will provide clearer rules for the industry while improving safeguards for investors and strengthening trust in Australia’s digital asset market.
