Australian Senate committee supports framework for cryptocurrency regulation.

The Senate Economics Legislation Committee indicated that the suggested legislation aims to update the regulatory framework for digital assets.

Australia's senate committee supports the regulatory framework for cryptocurrency. (Unsplash)

Key points:

• An Australian Senate committee has approved a bill that would incorporate cryptocurrency platforms and custodial services into the nation’s established financial services framework.
• The suggested Corporations Amendment (Digital Assets Framework) Bill 2025 would establish a licensing and compliance system for digital token managers by modifying the Companies Act and the ASIC Act.

An Australian Senate committee has endorsed proposed legislation aimed at integrating cryptocurrency platforms and custodial services into the national financial services framework.

The Senate Economics Legislation Committee stated in a report released on Monday that the proposed Corporations Amendment (Digital Assets Framework) Bill 2025 would enhance digital asset regulation by incorporating traditional market protections to safeguard consumers.

This framework aims to set up a licensing and compliance structure for those managing digital tokens by amending the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001.

The proposal focuses on companies that manage digital assets on behalf of clients, placing them under existing financial service regulations rather than attempting to regulate the underlying blockchain technology. If this measure is enacted, firms lacking an AFSL would be granted six months to secure the necessary authorization and adhere to the new framework.

Cryptocurrency exchanges operating in Australia are already mandated to register with the Australian Transaction Reports and Analysis Centre, the country’s financial intelligence agency, as digital currency providers prior to offering exchange services.