Australian Senate Committee Backs Crypto Regulation Bill: Exchanges to Apply for Financial License

March 16 The Australian Senate Standing Committee on Economics has recommended passing the **Corporations Amendment (Digital Assets Framework) Bill 2025**, which would require crypto exchanges to secure a financial license and be integrated into the existing financial regulatory framework. In its report, the committee noted the bill would substantially strengthen Australia’s digital asset industry regulatory framework, offer stronger consumer protections, aim to stay tech-neutral in rulemaking, and align with global regulatory frameworks. Under the bill, firms running digital asset trading platforms or tokenization custody services will be classified as financial service providers and must apply for an Australian Financial Services License (AFSL). Regulation will target intermediaries that hold user assets or facilitate transaction matching—not the blockchain technology itself. The bill will also legally define key terms like "digital tokens" and set rules for asset custody, trade execution, information disclosure, and customer asset protection. Introduced by the Treasury in November 2025, the bill passed the House of Representatives on February 4, 2026, and is now under Senate consideration. The committee noted most industry players back the government’s push for a clearer regulatory framework. However, some have raised concerns the bill’s definitions of "digital tokens" and "actual control" are overly broad, potentially affecting infrastructure providers or non-custodial services. If enacted, affected firms will have a six-month transition period to finish their license applications.