Catenaa, Tuesday, March 17, 2026-An Australian Senate committee has endorsed proposed legislation that would place cryptocurrency platforms and digital asset custody services under the country’s financial services laws, marking a major step in efforts to formalize oversight of the sector.
The Senate Economics Legislation Committee recommended that the government’s digital asset framework proceed through parliament, stating that the measure would modernize regulation and address gaps in consumer protection. Lawmakers said the rapid growth of digital asset markets has outpaced existing rules, creating inconsistencies in how customer assets are safeguarded.
The proposal centers on the Corporations Amendment (Digital Assets Framework) Bill 2025, which would amend the country’s corporate and securities laws to create a licensing regime for businesses holding or managing digital tokens on behalf of clients. Under the plan, operators of digital asset platforms and tokenized custody services would generally be required to obtain an Australian Financial Services Licence.
The framework would also introduce asset safeguarding requirements and disclosure obligations when companies onboard retail customers. Lawmakers said the changes are designed to ensure that firms holding large volumes of client digital assets meet standards comparable to traditional financial institutions.
The legislation defines key terms including digital tokens, digital asset platforms and tokenized custody platforms to clarify which intermediaries fall under the regime.
If approved, the bill would include a six month transition period for providers that do not already hold the required licence. Officials said the grace period would allow companies time to adjust compliance systems, update operational structures and meet regulatory expectations.
The move follows earlier steps by Australian authorities to strengthen digital asset oversight. Exchanges operating in the country are required to register with the Australian Transaction Reports and Analysis Centre, commonly known as AUSTRAC.
Treasury consultations have also explored integrating digital asset platforms into the broader financial services framework administered by the government and the corporate regulator.
Supporters of the legislation say clearer rules could encourage responsible industry growth. Industry executives argue that regulatory certainty may attract investment, improve compliance standards and support innovation in blockchain based financial services.
Kate Cooper, chief executive of OKX Australia, said legislative clarity could strengthen productivity and help digital asset businesses operate within defined legal boundaries.
She referenced research suggesting that digital finance innovation could contribute billions of dollars annually to the national economy.
Analysts cited in industry studies estimate potential gains of up to 24 billion dollars per year, equivalent to about one percent of gross domestic product, if regulatory frameworks support development and adoption.
Cooper added that structured regulation can enhance safeguards around customer assets while allowing Australian firms to access global blockchain technology through compliant channels.
Industry participants have long sought a comprehensive framework that distinguishes between blockchain infrastructure and the financial products built on top of it.
Lawmakers described the bill as a technology neutral approach that regulates intermediaries rather than the underlying blockchain protocols.
By focusing on service providers that manage client assets, the framework aims to apply existing financial services protections to digital asset businesses.
The committee’s endorsement moves the legislation closer to potential enactment, though it must still pass additional parliamentary stages before becoming law.
If approved, Australia would establish one of its first comprehensive licensing regimes specifically covering digital asset platforms and custody providers.
Observers say the proposal reflects a broader international trend toward integrating cryptocurrency services into established regulatory systems. Governments in several jurisdictions are working to define licensing standards, custody requirements and disclosure rules for firms operating in digital asset markets.
Market participants will continue monitoring the bill’s progress as lawmakers debate final provisions and implementation timelines. If enacted, the framework could reshape compliance requirements for exchanges, custodians and other digital asset service providers operating in Australia.
