An Australian Senate committee has backed proposed legislation to bring cryptocurrency platforms and custody providers into the country’s financial services framework.
The Senate Economic Legislation Committee said in a report released on Monday that the proposed Companies Amendment (Digital Assets Framework) Bill 2025 would modernize the regulation of digital assets through traditional market safeguards to protect consumers.
The framework aims to establish a licensing and compliance system for digital token managers through amendments to the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001.
The proposal targets companies that hold digital assets on behalf of clients, incorporating them into existing financial services rules rather than attempting to regulate the underlying blockchain infrastructure. If the measure becomes law, companies without an AFSL will have six months to obtain the required authorization and comply with the new framework.
Cryptocurrency exchanges operating in Australia must register as digital currency providers with the country’s financial intelligence agency, the Australian Transaction Reports and Analysis Center, before offering trading services.