Australia moved closer to implementing a comprehensive regulatory framework for digital asset platforms after the Senate Economics Legislation Committee recommended passing the Corporations Amendment (Digital Assets Framework) Bill 2025. The proposal would bring crypto exchanges and tokenization platforms under the country’s existing financial services regime.
If approved by Parliament, the legislation would classify digital asset platforms and tokenized custody platforms as financial products under the Corporations Act and the Australian Securities and Investments Commission Act. This would require many centralized exchanges and custody providers that hold customer assets to obtain an Australian Financial Services Licence.
The initiative follows the collapse of several high-profile crypto businesses globally, including FTX, which prompted regulators to focus on safeguarding customer assets held by centralized platforms. The proposed rules aim to close oversight gaps by introducing clearer custody standards, disclosure obligations, and governance requirements for companies operating in the digital asset sector.
Industry Concerns Over Regulatory Scope
Industry stakeholders raised concerns about how certain definitions in the bill could affect technology providers that do not directly control customer funds. Legal experts and crypto firms warned that the legislation’s interpretation of “digital token” and “factual control” could potentially extend regulation to infrastructure providers, including wallet software developers and firms using multi-party computation security models.
Companies such as Ripple argued that regulatory oversight should focus on entities that can independently transfer customer assets. According to industry feedback, technology providers that only hold a partial cryptographic key or support security infrastructure should not automatically be classified as custodians.
The committee acknowledged these concerns but recommended addressing them through future regulations rather than altering the core framework of the bill. The approach reflects a broader policy strategy of establishing the legal foundation first and refining implementation details later.
Institutional Context and Market Impact
The proposed licensing framework would also include exemptions for smaller operators. Platforms processing less than 10 million Australian dollars annually and certain public blockchain infrastructure providers would fall outside the licensing requirement.
Industry participants largely welcomed progress toward clearer rules. Coinbase’s regional leadership said the legislation represents an important step for Australia’s digital asset ecosystem, arguing that regulatory clarity could strengthen the country’s competitiveness in the global crypto market.
At the same time, companies continue to highlight broader structural challenges, including limited banking access for crypto firms. With the committee’s recommendation now issued, the bill will move to the Australian Senate for debate and a final vote, marking a significant step toward a formal regulatory framework for digital asset businesses in the country.