Australian Senate Committee Submits Bill Backing Crypto Licensing

• Australia’s Senate backs new digital asset framework, requiring crypto platforms to get AFSL.
• Australian lawmakers make a U-turn from their previous stance on crypto regulation.
• Lawmakers allow a six-month transition for firms to comply once the law passes.

Crypto encroachment into the Australian mainstream received a boost following a Senate Committee’s report on the government’s proposed digital asset regulatory framework. The latest submission is expected to outline the process of bringing crypto platforms and custody services under Australia’s financial services regime.

A Step Forward in Crypto Industry Oversight

According to the Australian Senate Economics Legislation Committee, the bill is a step toward modernizing oversight of digital assets. In the meantime, lawmakers acknowledge that the crypto industry is expanding rapidly, even though it remains unevenly regulated. 

It is worth noting that regulators in Australia have taken initial steps to regulate the crypto industry, including a mandatory requirement for crypto establishments, such as exchanges and treasury consultations, to obtain AUSTRAC registration. That is an initial step to bring digital asset platforms under the country’s financial services framework.

Creating a Licensing and Compliance Regime

Australian lawmakers published the proposed Corporations Amendment (Digital Assets Framework) Bill 2025 on Sunday, amending the Corporations Act and ASIC Act to create a licensing and compliance regime for cryptocurrency operators, including businesses that hold or manage digital tokens on behalf of clients.

Details of the submitted proposal require operators of digital asset platforms and tokenized custody services to hold an Australian Financial Services License (AFSL). They must also comply with asset-safeguarding standards and meet disclosure requirements when onboarding retail clients. Meanwhile, intermediaries dealing with customer assets will be brought under the existing financial services law, aligning with the proposal’s definition of core concepts, including “digital tokens,” “digital asset platforms,” and “tokenized custody platforms.”

Lawmakers Make a U-Turn

The latest event marks a turnaround in the Australian Senate’s decision on the crypto licensing bill. In 2023, the legislature rejected the Digital Assets (Market Regulation) Bill, citing a lack of detail, international alignment, and premature timing. They have now backed the 2025 version, which aims to mandate AFSL licensing and modernize frameworks, while providing firms with a six-month transition period to comply once the bill is passed into law.

Related: Australia Approves AUDD Stablecoin for XRPL, XRP Price Steady