Australian Senate Committee Backs Crypto Licensing Bill

The Australian Senate Economics Legislation Committee has recommended advancing the Corporations Amendment (Digital Assets Framework) Bill 2025, which would mandate that cryptocurrency platforms obtain financial licenses. The bill aims to strengthen consumer protections while providing a clear regulatory framework for businesses operating digital asset or tokenized custody platforms.

Under the proposal, crypto platforms would be treated like other financial service providers and required to secure an Australian Financial Services Licence. The legislation focuses on intermediaries that hold customer assets or facilitate trading rather than regulating blockchain technology itself, identifying these entities as the primary source of risk in the crypto ecosystem.

Key Provisions and Industry Feedback

The bill defines critical concepts such as “digital tokens,” clarifies the application of existing financial laws to crypto services, and introduces rules around asset custody, transaction execution, and disclosure requirements for retail clients. The framework also sets standards for safeguarding customer assets.

Industry responses were largely supportive, though some raised concerns over definitions like “digital token” and “factual control,” which could affect infrastructure providers or non-custodial services. The bill allows a six-month transition period for platforms that do not currently hold a financial license.

Next Steps

Introduced by Treasury in November 2025, the bill passed the House of Representatives and is now moving through the Senate. If enacted, it would establish one of Australia’s most comprehensive regulatory frameworks for digital assets, aiming to align local rules with international standards while improving consumer safeguards.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.