Australia's Senate Economics Legislation Committee has recommended passage of the Corporations Amendment (Digital Assets Framework) Bill 2025, a measure that would bring cryptocurrency exchanges and custody providers under the country's established financial services regulatory umbrella.

The committee's report, published Monday, says the proposed framework would modernize digital-asset oversight by layering existing market safeguards onto crypto service providers rather than creating a parallel regulatory system from scratch.

What the Bill Would Require

The legislation targets firms that hold digital assets on behalf of customers — exchanges, custodians, and digital token managers — rather than attempting to regulate underlying blockchain infrastructure directly.

Under the bill, these firms would be required to hold an Australian Financial Services License (AFSL), the same authorization that traditional financial services businesses must obtain. Providers without an AFSL at the time of enactment would be given a six-month grace period to comply. The committee noted the framework amends the Corporations Act 2001 and the ASIC Act 2001 to accommodate the new asset class.

Crypto exchanges operating in Australia are already required to register with AUSTRAC, the country's financial intelligence agency, as digital currency providers. The Digital Assets Framework would add a second layer of oversight covering custody and exchange functions specifically.

Why It Matters

Regulatory clarity at the national level has become a competitive signal. Australia would join the EU (MiCA), UK, UAE, and Singapore in establishing rules that reduce legal uncertainty for firms building in the space, and that meaningfully protect retail users holding assets on exchanges.

The bill still needs to pass both chambers of parliament before becoming law. The committee recommendation is a meaningful step in that process but not the final word.