Australia is making significant strides in the world of cryptocurrency regulation with the endorsement of the Corporations Amendment (Digital Assets Framework) Bill 2025 by the Senate Economics Legislation Committee. This move, announced on March 16, paves the way for a more comprehensive and tailored licensing framework for digital asset platforms (DAPs) and tokenized custody platforms (TCPs).
The bill, introduced by Assistant Treasurer and Financial Services Minister Daniel Mulino in November 2025, aims to bring DAPs and TCPs under the purview of the Australian Financial Services Licence (AFSL) regime, aligning them with the existing financial services framework under the Corporations Act and the Australian Securities and Investments Commission (ASIC) Act. This step is crucial in the wake of high-profile collapses in the crypto industry, such as FTX, which highlighted the need for stricter oversight and regulation.
Key Provisions and Industry Concerns
The bill requires licensed platforms to adhere to strict standards set by ASIC, including custody and settlement protocols, tailored disclosure rules for retail clients, and platform-specific conduct and governance requirements. However, small providers with annual transaction thresholds under 10 million Australian dollars ($7 million) and certain public blockchain infrastructure are exempt from these stringent regulations.
Industry groups, such as law firm Piper Alderman, have raised concerns about the broad definitions of “digital token” and “factual control” in the bill. They argue that these definitions could inadvertently include wallet software and infrastructure providers in non-unilateral control setups, such as multi-party computation (MPC) configurations. US blockchain firm Ripple Labs echoed these concerns, emphasizing that the bill should better accommodate modern security architectures to avoid misclassification of technology-only providers as regulated custodians.
Committee’s Response and Future Steps
The committee acknowledged these industry concerns but decided to side with Treasury’s plan to refine the regulatory perimeter through future regulations rather than rewriting the core definitions. This approach allows for flexibility and adaptability in the rapidly evolving crypto landscape.
Coinbase Australia, led by John O’Loghlen, the director and APAC managing director, welcomed the committee’s recommendation, viewing it as a positive step for Australia’s standing in the global digital economy. O’Loghlen highlighted the country’s potential to become a leader in digital assets, provided that clear rules are established. However, he also cautioned against the anti-competitive practice of debanking, urging the government to prioritize the implementation of the Council of Financial Regulators’ recommendations to address this issue.
Looking Ahead
With the Senate Economics Legislation Committee’s backing, the bill now moves to the Senate for debate and a final vote. If passed, this legislation will mark a significant milestone in Australia’s efforts to create a robust and transparent regulatory environment for digital assets. It will not only enhance consumer protection but also foster innovation and growth in the crypto sector, positioning Australia as a forward-thinking and investor-friendly jurisdiction.
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