An Australian Senate committee has backed proposed legislation to integrate cryptocurrency platforms and custody providers into the country’s financial services framework.
The Senate Economic Legislation Committee said in a report released Monday that the Corporations Amendment (Digital Asset Framework) Bill of 2025 would modernize oversight of digital assets with traditional market safeguards to protect consumers.
The framework seeks to establish a licensing and compliance system for digital token managers by amending the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001.
The proposal targets companies that hold digital assets on behalf of their clients, subjecting them to existing financial services rules rather than attempting to regulate the underlying blockchain infrastructure. If the measure were to become law, companies without AFSL would have six months to obtain the required authorization and comply with the new framework.
Cryptocurrency exchanges operating in Australia are already required to register with the country’s financial intelligence agency, the Australian Transaction Reporting and Analysis Centre, as digital currency providers before offering exchange services.
