<div id="readability-page-1" class="page"><div><div><p>Australia has moved a step closer to implementing a comprehensive regulatory framework for digital assets after the Australian Senate Economics Legislation Committee recommended passing new legislation that would bring crypto platforms under the country’s financial-services regime.</p><p>The proposed Corporations Amendment (Digital Assets Framework) Bill 2025 would require most crypto exchanges and tokenized custody providers to obtain an Australian Financial Services Licence, placing them under the supervision of the Australian Securities and Investments Commission.</p><div><div><blockquote><div dir="ltr" lang="en"><p>Australia Senate Panel Backs Crypto Framework in Latest Regulatory Push</p><p>The proposal would bring crypto platforms and custodians under Australia’s financial-services law, requiring operators that hold client tokens to obtain licences</p><p>➤ https://t.co/t2whq1SqqN#Panel#Backs</p></div>— BitBox (@BitBoxNews) March 16, 2026</blockquote></div></div><p>Lawmakers say the reform is designed to close regulatory gaps in the rapidly expanding digital-asset sector while strengthening protections for consumers after high-profile industry failures such as FTX.</p><p>The bill, first introduced in November 2025 by Assistant Treasurer Daniel Mulino, would classify digital asset platforms (DAPs) and tokenized custody platforms (TCPs) as financial products under Australia’s Corporations Act and ASIC Act.</p><p>Under the proposed framework, businesses that hold or manage digital tokens on behalf of customers would generally be required to obtain an Australian Financial Services Licence and comply with custody, settlement and governance standards set by regulators. </p><div><div><blockquote><div dir="ltr" lang="en"><p>🚨 JUST IN: Ripple is moving to secure an Australian financial services license by acquiring BC Payments Australia.</p><p>Expanding regulated crypto payments in the Asia-Pacific region. pic.twitter.com/EQcv1hJ28B</p></div>— Real World Asset Watchlist (@RWAwatchlist_) March 11, 2026</blockquote></div></div><p>Platforms serving retail investors would also be required to follow tailored disclosure rules aimed at improving transparency around how client assets are handled.</p><p>Lawmakers say the reforms are intended to modernize oversight of the digital-asset sector while ensuring that companies safeguarding customer funds operate under protections similar to those applied in traditional financial markets.</p><p>However, the framework would include exemptions for smaller operators handling less than 10 million Australian dollars in annual transactions, as well as certain public blockchain infrastructure providers. </p><p>If the legislation is enacted, companies that do not already hold an Australian Financial Services Licence would also receive a six-month transition period to comply with the new requirements.</p><p>While many industry participants support clearer regulation, some groups have raised concerns about how the bill defines key concepts such as “digital tokens” and “factual control.”</p><p>Legal experts from Piper Alderman warned that the language used in the legislation could inadvertently bring wallet software developers and infrastructure providers within the regulatory perimeter, even if they do not actually control customer funds.</p><p>The issue is particularly relevant for modern crypto security systems such as multi-party computation (MPC) wallets, which distribute private keys across multiple parties instead of giving one entity full control over an asset.</p><p>Ripple Labs echoed those concerns, arguing that regulatory oversight should focus on whether an entity can unilaterally transfer customer assets. The firm warned that a strict interpretation of the bill could misclassify technology providers holding only a single key shard as regulated custodians.</p><p>Ripple has urged lawmakers to clarify that “factual control” exists only when an entity can independently move digital assets without a client’s cooperation.</p><p>The Senate committee acknowledged the industry’s concerns but ultimately sided with Treasury’s approach, suggesting that such issues could be addressed later through regulatory guidance rather than rewriting the bill’s core definitions.</p><p>Despite the concerns, several crypto companies welcomed the committee’s recommendation as a positive step toward regulatory clarity.</p><p>John O’Loghlen, Australia director and APAC managing director at Coinbase, said the proposed framework could strengthen Australia’s standing in the global digital-asset economy.</p><p>According to O’Loghlen, the country already possesses the capital and technical talent needed to become a major digital-asset hub, but clearer regulations are necessary to unlock that potential.</p><p>However, he also warned that the industry continues to face challenges from traditional financial institutions, particularly in the form of debanking, where banks refuse to provide services to crypto companies.</p><p>O’Loghlen said the practice remains widespread despite the government’s previous commitments to address the issue and urged authorities to implement recommendations made by the Council of Financial Regulators aimed at improving banking access for digital-asset firms.</p><div><div><blockquote><p dir="ltr" lang="en">🇦🇺 INSIGHT: A $123M crypto scam in Australia laundered funds through a licensed money transfer firm. One of the country's biggest frauds. pic.twitter.com/Z5TATuT631</p>— Cointelegraph (@Cointelegraph) July 5, 2025</blockquote></div></div><p>Supporters of the legislation also argue that clearer rules could deliver significant economic benefits. Research cited by industry groups suggests digital-finance innovation could contribute up to $24 billion annually — roughly 1% of Australia’s GDP — if the sector is allowed to grow within a stable regulatory environment.</p><p>With the committee’s backing secured, the bill will now move to the Australian Senate for debate and a final vote. If passed, the framework would represent Australia’s first comprehensive licensing regime for digital-asset platforms, marking a major step toward integrating the crypto industry into the country’s mainstream financial regulatory system while balancing innovation with stronger consumer protections.</p></div></div></div>

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<p>The Australian Senate has approved a new regulatory framework for digital assets, requiring most crypto exchanges and tokenized custody providers to obtain an Australian Financial Services Licence. This legislation aims to enhance consumer protections and close regulatory gaps following industry failures like FTX. While some industry participants support clearer regulations, concerns have been raised about the bill's definitions potentially capturing infrastructure providers. Despite challenges, many crypto firms view this as a step towards regulatory clarity, which could bolster Australia's position in the global digital-asset economy.</p>

- Australia is advancing towards a comprehensive regulatory framework for digital assets as the Senate Economics Legislation Committee recommended new legislation for crypto platforms.  
- The proposed Corporations Amendment (Digital Assets Framework) Bill 2025 would require crypto exchanges and custody providers to obtain an Australian Financial Services Licence, enhancing consumer protections following industry failures.  
- If enacted, the bill would represent Australia's first comprehensive licensing regime for digital assets, aiming to modernize oversight and foster a stable environment for the sector's growth.

Australia Cracks Down on Crypto: Senate Approves Sweeping AFSL Licensing Rules