KEY FACTS: Australia's Senate Economics Legislation Committee has recommended the passage of the Corporations Amendment (Digital Assets Framework) Bill 2025, a government-backed measure introduced in November 2025 by Assistant Treasurer and Financial Services Minister Daniel Mulino. The legislation would classify centralized "digital asset platforms" (such as crypto exchanges) and "tokenised custody platforms" as financial products under the Corporations Act 2001 and ASIC Act, requiring most operators to obtain an Australian Financial Services Licence (AFSL) from ASIC and comply with tailored rules on custody, settlement, retail client disclosures, conduct, and governance to enhance consumer protection and market integrity following high-profile failures like FTX. Exemptions apply to smaller providers with annual transaction volumes below A$10 million (about US$7 million) and certain public blockchain infrastructure participants. The bill now heads to the full Senate for debate and a potential vote, marking a major step toward modernizing Australia's crypto regulatory framework.
Source: Australian Map, Flag
Australian Senate Committee Backs New Crypto Platform Licensing Bill
The Australian Senate has taken a significant step toward establishing a comprehensive regulatory framework for digital assets, with a key parliamentary committee endorsing government-backed legislation that would require cryptocurrency exchanges and custody platforms to obtain formal financial licenses.
On March 16, 2026, the Senate Economics Legislation Committee tabled its report recommending the passage of the Corporations Amendment (Digital Assets Framework) Bill 2025. Introduced by Assistant Treasurer and Financial Services Minister Daniel Mulino in November 2025, the bill seeks to close longstanding oversight gaps in Australia's crypto sector by integrating key digital asset platforms into the existing financial services regime.
The proposed law would classify "digital asset platforms" (DAPs), such as centralized exchanges, and "tokenised custody platforms" (TCPs) as financial products under the Corporations Act 2001 and the Australian Securities and Investments Commission (ASIC) Act. This would mandate that most centralized exchanges and businesses holding client digital assets obtain an Australian Financial Services Licence (AFSL) from ASIC.
Licensed entities would be subject to tailored requirements, including ASIC-established standards for custody and settlement of assets, specific disclosure rules for retail clients, and enhanced conduct and governance obligations designed to protect consumers and maintain market integrity. The framework aims to prevent repeats of major industry failures, such as the collapse of FTX, which exposed vulnerabilities in unregulated or lightly regulated platforms holding customer funds.
To balance innovation with regulation, the bill includes exemptions for smaller providers whose annual transaction volumes fall below 10 million Australian dollars (approximately $7 million USD) and certain public blockchain infrastructure providers. These carve-outs are intended to avoid overburdening emerging or decentralized elements of the ecosystem.
The committee's endorsement comes amid growing calls for clearer rules in Australia's digital asset space. Successive parliamentary inquiries, including the 2021 Senate Select Committee on Australia as a Technology and Financial Centre, highlighted the limitations of the current "light-touch" approach, primarily anti-money laundering oversight by AUSTRAC, urging a more robust framework to foster innovation while safeguarding investors.
Industry reactions to the bill have been mixed but largely supportive of the overall direction. Coinbase Australia's director and APAC managing director, John O’Loghlen, welcomed the committee's recommendation as “an important step for Australia’s standing in the global digital economy.” He emphasized that the country possesses the capital and talent to lead in digital assets but requires “clear rules to unlock that potential.” O’Loghlen also highlighted ongoing concerns about “the anti-competitive practice of debanking,” noting that despite government-endorsed measures in 2022, such issues persist and should be prioritized alongside the Council of Financial Regulators’ recommendations.
Other stakeholders, including Ripple Labs and legal firm Piper Alderman, expressed support for the regulatory intent but raised concerns about the bill's definitions. They argued that broad terms like “digital token” and the “factual control” test for custody could inadvertently capture non-custodial wallet software, infrastructure providers, or modern security setups such as multi-party computation (MPC) wallets. In MPC configurations, common for enhanced security, entities might hold only a single key shard without unilateral control over assets. Ripple urged clarification that an entity does not exercise “factual control” unless it can unilaterally transfer assets without client cooperation. The committee acknowledged these points but recommended addressing perimeter refinements through future subordinate regulations rather than altering the bill's core definitions.
The legislation represents a pragmatic approach, building on Australia's existing financial services architecture rather than creating an entirely new regime. Proponents argue it could unlock significant economic benefits, government estimates suggest potential annual productivity gains of up to $24 billion, by providing regulatory certainty that attracts institutional participation and boosts confidence in the sector.
With the committee's positive report now in hand, the Corporations Amendment (Digital Assets Framework) Bill 2025 advances to the full Senate for debate and a potential final vote. If passed, it would mark one of the most substantial updates to Australia's crypto regulatory landscape to date, positioning the nation as a more mature player in the global digital finance arena while prioritizing consumer protection in a rapidly evolving industry.
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