Australian Lawmakers Advance New Bill to Regulate Crypto Platforms

The Australian Senate committee has shown its support for a new bill aimed at regulating cryptocurrency. This legislation would bring digital asset platforms under the existing financial services framework. The Senate Economics Legislation Committee recommended passing the Corporations Amendment (Digital Assets Framework) Bill 2025, which would introduce licensing and compliance requirements for crypto exchanges and custody providers operating in Australia. If Parliament approves it, the proposed law would require companies that manage digital assets for clients to have the necessary financial licences and follow consumer protection rules.

Crypto Firms Could Soon Be Brought Under Financial Services Framework

The legislation proposed by Australian lawmakers aims to modernise current financial regulations, bringing crypto businesses in line with the oversight faced by conventional financial entities. This framework would mandate that firms managing or holding digital assets for their customers adhere to licensing, compliance, and operational guidelines, all of which are within the scope of Australia's financial services framework. The Senate committee's recommendation paves the way forward for the bill in the Australian Parliament, although it is yet to become a law. 

The regulators further said that the bill is intended to modernise Australia's approach to regulating digital assets while improving consumer protections for investors. The proposal is centred around regulating firms offering crypto financial services, not the blockchain technology that powers them. The committee observed that tighter supervision of exchanges and custody providers could mitigate risks tied to investor protection and market integrity. 

In October 2025, the Australian Securities and Investments Commission (ASIC) released updated guidance, indicating that specific digital assets such as stablecoins, wrapped tokens, and tokenised assets, for instance, might be classified as financial products under current legislation. The regulator said the clarification was aimed at strengthening investor protections while giving businesses more clarity on rules and how to operate in the country's growing crypto sector. 

The Senate committee's most recent recommendation indicates Australia's ongoing push to establish a more defined regulatory framework for digital assets. If Parliament approves the bill, it might impose more stringent licensing requirements on cryptocurrency companies, effectively aligning the sector with the existing regulatory frameworks that oversee conventional financial services within the nation.