- A key Australian Senate committee has recommended passage of the Digital Assets Framework Bill, aiming to modernize oversight and close consumer protection gaps.
- The bill would classify crypto trading platforms and custody services as financial products, requiring them to obtain a Financial Services Licence.
- Operators would have a six-month transition period to comply with new safeguarding and disclosure rules for retail clients.
- The legislation is the country’s first comprehensive attempt to bring crypto intermediaries under its established financial services law.
A key Australian Senate committee has backed landmark crypto legislation that would impose a strict licensing regime on the nation’s digital asset sector. The Senate Economics Legislation Committee, recommending the bill proceed, said it would modernize oversight of a rapidly expanding industry.
Consequently, the proposed rules would treat digital-asset platforms and tokenized custody services as regulated financial products. Operators holding client tokens would generally need an Australian Financial Services Licence and comply with asset-safeguarding standards.
Lawmakers stated this change is intended to close regulatory gaps that allow businesses to hold large client assets without traditional finance safeguards. The framework defines concepts like “digital tokens” to bring intermediaries under existing law rather than regulating blockchain technology itself.
Industry representatives broadly welcomed the move toward regulatory clarity. OKX Australia CEO Kate Cooper told Decrypt that “legislative clarity could be the foundation for a significant increase in Australia’s productivity standards.”
She cited research estimating digital-finance innovation could add nearly $24 billion annually to the economy. Meanwhile, the bill will now proceed through the next stages of the parliamentary process for final consideration.
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