Australian Senate committee backs crypto bill requiring platforms to get licensed

An Australian Senate committee has recommended the passage of a major cryptocurrency regulatory bill that would require financial licenses for crypto platforms.

In a report released Monday, the Senate Economics Legislation Committee said the Corporations Amendment (Digital Assets Framework) Bill 2025 would represent a “substantial improvement” to the regulation of digital assets in Australia. 

The committee noted that developing rules capable of accurately identifying and controlling risk — while remaining technology-neutral and compatible with international frameworks — is a “considerably difficult undertaking,” but concluded the bill delivers meaningfully stronger safeguards for Australian consumers. 

The legislation is part of Australia’s broader push to establish a comprehensive regulatory framework for crypto services.

Under the proposal, businesses operating digital asset platforms or tokenized custody platforms would be treated similarly to other financial service providers and required to obtain an Australian Financial Services Licence, according to an official bill digest. 

Rather than regulating the underlying blockchain technology, the bill focuses on intermediaries that hold customer assets or facilitate trading, which regulators view as the main source of potential risk in the ecosystem. 

The bill also seeks to define key concepts such as “digital tokens,” clarify how existing financial services laws apply to crypto platforms, and introduce rules governing asset custody, transaction execution, and disclosure requirements for retail clients. The framework would also establish standards for safeguarding customer assets.

Introduced by the Treasury in November 2025, the bill passed its third reading in the House of Representatives on Feb. 4 before being referred to the Senate the next day. The Senate Economics Legislation Committee has since reviewed the bill and industry feedback, releasing its report on Monday.

Feedback

The committee said that industry submissions broadly welcomed the government’s efforts to modernize the country’s regulatory framework and create clearer rules for market participants. The committee’s inquiry received submissions from a range of industry groups, including exchanges, fintech associations, and law firms. 

While many stakeholders supported the bill’s overall direction, several raised concerns about the breadth of certain definitions — particularly terms “digital token,” “possession,” and “factual control” — warning that they could impact infrastructure providers or non-custodial services.

According to the report, the Treasury largely defended the existing draft and said that some issues on multi-party arrangements could be addressed in forthcoming regulations.

If passed, the framework would include a six-month transition period following its commencement for businesses that do not currently hold the required financial licenses.

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