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An Australian Senate committee has recommended passing a major crypto regulation bill that would require digital asset platforms to obtain financial licenses.
In a report released Monday, the Senate Economics Legislation Committee said the Corporations Amendment (Digital Assets Framework) Bill 2025 would significantly strengthen oversight of digital assets and improve protections for consumers in Australia.
The bill is part of the government’s broader effort to build a comprehensive regulatory framework for digital asset services.
Under the proposal, businesses operating digital asset trading platforms or tokenized custody services would be treated similarly to traditional financial service providers and required to obtain an Australian Financial Services Licence (AFSL).
Rather than regulating blockchain technology itself, the legislation focuses on intermediaries such as exchanges and custodians that hold customer assets or facilitate trading, which regulators consider the primary source of risk in the ecosystem.
The bill also aims 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. It would also establish standards for safeguarding customer assets.
The legislation was introduced by Australia’s Treasury in November 2025 and passed its third reading in the House of Representatives on Feb. 4 before being referred to the Senate for further review.
Industry participants have broadly welcomed the government’s attempt to modernize the country’s regulatory framework and provide clearer rules for market participants. However, some stakeholders raised concerns that definitions such as “digital token,” “possession,” and “factual control” may be too broad and could affect infrastructure providers or non-custodial services.