Australian Senate Backs Crypto Regulation Framework

The Australian Senate has taken a significant step towards regulating cryptocurrency in the country. The Senate Economics Legislation Committee has approved a proposed framework to integrate cryptocurrency platforms and custody providers into the financial services framework.

The Corporations Amendment (Digital Assets Framework) Bill 2025, if passed, would modernize digital-asset oversight with traditional market safeguards to protect consumers. The proposal targets firms that hold digital assets on behalf of customers, bringing them under existing financial services rules instead of attempting to regulate the underlying blockchain infrastructure.

The framework seeks to establish a licensing and compliance system for digital token managers by amending the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001. This move is expected to enhance consumer protection and ensure that cryptocurrency firms operate in a transparent and regulated environment.