Headline: Australian Senate Committee backs bill to fold crypto custodians and exchanges into financial-services rules The Senate Economics Legislation Committee has thrown its weight behind the Corporations Amendment (Digital Assets Framework) Bill 2025, in a report published Monday, setting the stage for a major update to how Australia supervises crypto platforms and custody providers. What the bill does - The draft law would amend the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001 to create a licensing and compliance regime for digital token managers. - Rather than regulating blockchains themselves, the framework targets firms that hold digital assets on behalf of customers—bringing custodians, exchanges and other token managers squarely under established financial-services rules. - If passed, businesses that do not already hold an Australian Financial Services Licence (AFSL) would have six months to obtain authorization and meet the new compliance requirements. Why it matters - The committee framed the Bill as a modernization of digital-asset oversight that layers traditional market safeguards onto crypto services, with consumer protection as a central objective. - For industry participants, the changes promise clearer legal status and standards for custody and trading services; for regulators and users, they aim to reduce operational and counterparty risk by applying familiar supervision and disclosure obligations. Existing obligations - Crypto exchanges operating in Australia are already required to register with the country’s financial intelligence agency, AUSTRAC, as digital currency providers before offering exchange services—this Bill would add a parallel licensing/compliance overlay specific to financial-services regulation. Next steps - The committee’s endorsement advances the Bill through the parliamentary process, but it must still be passed by both houses and receive royal assent before becoming law. If enacted, the six-month compliance clock would begin for firms without an AFSL. Read more AI-generated news on: undefined/news