Australia moves forward with crypto regulation bill

Australia’s Senate committee backs a bill to regulate crypto platforms and custodians, requiring financial services licences and new compliance standards to boost oversight and consumer protection.

Australia is set for a significant shift in its crypto regulation landscape as the Senate Economics Legislation Committee has endorsed a bill to bring digital asset platforms and custodians under the nation’s financial-services law. The proposed Corporations Amendment (Digital Assets Framework) Bill 2025 would require crypto platforms and custody providers to obtain an Australian Financial Services Licence, with a six-month transition period for compliance. This framework aims to modernize oversight of digital assets, enhance consumer protection, and align crypto service providers with traditional financial institutions. The bill updates the Corporations Act 2001 and the ASIC Act 2001, introducing licensing and compliance requirements for firms managing or holding crypto assets for customers. While the move is praised for increasing transparency and reducing risks, some industry experts warn that overregulation could stifle innovation. The bill does not regulate the underlying blockchain technology but focuses on platforms and custodians, building on existing requirements such as AUSTRAC registration for exchanges. The legislation now moves to further parliamentary consideration.