Australia Steps Up Crypto Regulation with Mandatory Licensing Proposal

Australia is moving closer to establishing a robust regulatory framework for its rapidly growing cryptocurrency market.

The Senate Economics Legislation Committee has recommended passing the Corporations Amendment (Digital Assets Framework) Bill 2025, which would require cryptocurrency platforms to obtain an Australian Financial Services Licence (AFSL).

This licence would place them under the same regulatory framework as other financial service providers, effectively improving oversight and strengthening consumer protections.

The bill also seeks to clearly define key concepts such as 'digital tokens' and introduce rules governing asset custody, transaction execution, and disclosure requirements for retail investors.