Crypto Rules Get a Boost in Australia
Australia’s Senate Economics Committee has advanced a new bill that would bring crypto exchanges and token platforms under the same regulatory framework as traditional banks. The proposal, Corporations Amendment (Digital Assets Framework) Bill 2025, seeks to close loopholes that allowed digital asset firms to operate with minimal oversight following high‑profile crashes such as FTX.
Key Provisions
Scope
Digital Asset Platforms (DAPs) and Tokenised Custody Platforms (TCPs) will be classified as financial services under the Corporations Act and the Australian Securities and Investments Commission Act.- Licensing Requirements
Centralised exchanges and custody businesses that hold customer funds will need an Australian Financial Services Licence (AFSL). They must meet: - Strict custody and settlement standards
- Detailed disclosure obligations
Specific conduct rules
Exemptions
Small operators with annual trades below AUD 10 million or certain public blockchain services will be exempt.
Industry Concerns
Broad Definitions
Critics warn the bill’s definitions could inadvertently capture wallet software and infrastructure providers. A law firm highlighted that key‑shard wallets used in multi‑party computation might be mislabelled as regulated custodians.Regulator’s “Control” Test
Designed to identify who can move funds without a client, the wording may be too vague. The committee plans to refine these rules later rather than alter core definitions now.
Stakeholder Reactions
- Coinbase Australia
Managing director praised the move as a step toward a clearer regulatory environment, noting that Australia has the talent to lead in digital assets but needs solid rules to attract investment. He also warned about ongoing “debanking” practices and urged the government to act on earlier recommendations.
Next Steps
With committee approval, the bill will proceed to the Senate for debate and a final vote. Its outcome could significantly shape how crypto services operate across Australia.
