Australian Senate Committee Backs Crypto Bill Requiring Financial Licenses for Digital Asset Platforms

Highlights:

• The Australian Senate has supported a crypto bill that would require digital asset platforms to obtain a financial services license to operate.
• Industry groups support clearer rules but warn that some definitions may affect wallet and infrastructure providers.
• The proposal includes a six-month transition period for crypto businesses to meet the new licensing rules.

The Australian Senate Economics Legislation Committee released a report that supports new regulations for crypto businesses in Australia. The committee reviewed the Corporations Amendment (Digital Assets Framework) Bill 2025 during a parliamentary inquiry. Lawmakers examined submissions from regulators, exchanges, and legal groups. The report states that the bill would strengthen oversight of businesses that hold digital assets for customers.

🇦🇺 Big move for crypto regulation!

Australia’s Senate committee has backed a new crypto regulatory framework, aiming to bring clearer rules, stronger investor protection, and greater innovation to the digital asset ecosystem. 🚀

As global governments shape crypto policies, this…

— Cryptovate (@cryptovate_io) March 16, 2026

The proposal would place digital asset trading platforms and tokenized custody services under Australia’s financial services laws. Companies that operate these services would need an Australian Financial Services License. Licensed firms must follow rules on asset custody, governance, and disclosure for retail users. Regulators want crypto platforms to operate under standards already used in financial markets.

The bill focuses on intermediaries that control or manage customer tokens. Lawmakers view these businesses as the main point of risk in the digital asset market. The framework does not regulate blockchain technology itself. Instead, it targets platforms that facilitate trading or store assets for clients.

The legislation also introduces legal definitions for several key terms. The bill defines digital tokens, digital asset platforms, and tokenized custody platforms. Regulators will use these definitions to determine which companies fall under the licensing framework. The definitions also explain how existing financial services laws apply to crypto businesses.

Lawmakers also examined weaknesses that appeared after several global crypto failures. Some platforms held large amounts of customer assets without safeguards used in traditional finance. Policymakers want stronger controls when companies store or manage client tokens. Licensed providers must maintain clear custody procedures and operational controls.

Australia Senate Reviews Concerns Over Key Crypto Definitions

The committee received submissions from exchanges, fintech associations, law firms, and blockchain companies. Many participants supported clearer rules for digital asset businesses. Industry groups said consistent regulation could improve confidence in the sector. Several submissions also supported stronger protections for retail users.

Some stakeholders, however, were concerned about the breadth of a number of definitions in the crypto bill. The terms “digital token,” “possession,” and “factual control” were highlighted by industry experts. They said the wording could include companies that provide technical infrastructure. Some firms argued that technology providers should not face the same licensing rules as custodial platforms.

Some of the submissions were based on the protection of private keys by digital wallets. Multi-party computation systems are used by many providers to safeguard digital assets. These systems share key access among multiple participants. No one participant is capable of moving funds without the collaboration of others.

Industry groups stated that the bill should take into account these security models. A company may possess one major piece of information but have no power to transfer money. Stakeholders argued that this should not be considered factual control. They requested legislators to clarify the point at which a firm gains control over customer assets.

Crypto Bill Sets Six-Month Transition for Businesses

The House of Representatives passed the crypto bill during its third reading on February 4. Lawmakers referred the proposal to the Senate the following day. The Australian Senate Economics Legislation Committee then reviewed the crypto bill and published its report. The legislation now moves toward debate in the Senate.

Australia’s securities regulator has also introduced measures that support stablecoin activity in the country. The Australian Securities and Investments Commission confirmed rules that apply to eligible stablecoins and wrapped tokens. The regulator said the changes will make it easier for businesses to distribute these assets. Officials said the measures will help companies manage compliance costs.

🧵 Regulators in Australia just eased rules for stablecoins and wrapped tokens.

The message is clear: digital assets are becoming part of the formal financial system.

Here’s what’s behind the decision. 👇 pic.twitter.com/NvN6xhb9GP

— Kumaa Crypto (@KumaaCrypto) December 26, 2025

If lawmakers approve the crypto bill, regulators will introduce a six-month transition period. Digital asset businesses will receive time to meet the new licensing rules. Companies without an Australian Financial Services License must apply during this window. Firms will also prepare custody controls and disclosure procedures for retail clients.