Australia Advances Crypto Regulation With Senate Support for Digital Asset Framework

Key Highlights

• An Australian Senate committee has backed the government’s Digital Assets Framework Bill
• The proposed law would bring crypto exchanges and custody platforms under financial services regulation
• Firms would be required to hold an Australian Financial Services Licence (AFSL)
• The framework aims to improve consumer protection and market integrity in digital asset markets
• Regulators would gain expanded oversight powers over digital asset platforms
• The legislation is part of Australia’s broader effort to modernise crypto regulation
• The bill is now moving forward in the parliamentary process for further debate

Australia has taken another step toward formalising its cryptocurrency regulatory regime after a Senate committee expressed support for a proposed digital asset framework. The legislation, known as the Digital Assets Framework Bill, is designed to bring crypto platforms and custody providers under the country’s existing financial services laws.

Under the proposed rules, businesses operating digital asset platforms or tokenised custody services would be required to obtain an Australian Financial Services Licence (AFSL). This would place crypto exchanges and custodians under similar obligations to traditional financial service providers, including requirements around disclosure, asset protection, and compliance standards.

The framework is intended to address regulatory gaps in the sector, particularly in relation to platforms that hold or manage customer digital assets. Lawmakers argue that clearer rules are needed to improve consumer protection, strengthen market integrity, and reduce risks associated with unregulated intermediaries in the crypto industry.

The bill also introduces new legal definitions for digital asset platforms and tokenised custody platforms, effectively bringing them into Australia’s formal financial product classification system. Regulators such as the Australian Securities and Investments Commission would gain expanded authority to supervise and enforce compliance within the sector.

Supporters of the legislation describe it as a necessary step to modernise Australia’s financial system as digital asset usage continues to grow. The Senate committee noted that while regulating such a rapidly evolving industry is complex, the framework represents a significant improvement in oversight and clarity for businesses operating in the space.

The move forms part of a wider global trend, with multiple jurisdictions developing structured regulatory regimes for cryptocurrencies, stablecoins, and tokenised financial products. In Australia’s case, the focus remains on integrating digital asset services into existing financial law rather than creating an entirely separate regulatory system.

With committee backing secured, the bill will now progress through further parliamentary stages before it can be enacted into law, marking another milestone in Australia’s evolving approach to digital asset regulation.