-
Australia’s Senate supports new digital asset framework requiring crypto platforms get AFSL.
-
Australian legislators make a U turn from their previous position on crypto regulation.
-
Lawmakers give firms six months to comply with the new law.
The report of a Senate Committee on the proposed regulatory framework for digital assets by the Australian government has given a boost to the crypto encroachment in the mainstream. The latest submission will outline the process for bringing crypto platforms, and custody services, under Australia’s Financial Services regime.
Crypto Industry Oversight: A Step Forward
According to the Australian Senate Economics Legislation Committee (Senate ELC), the bill is an important step towards modernizing the oversight of digital assets. Legislators acknowledge that the crypto-industry is growing rapidly, despite the fact that it remains unevenly controlled.
It is important to note that regulators have taken the first steps to regulate Australia’s crypto industry. This includes a requirement for crypto establishments such as exchanges and Treasury consultations to obtain AUSTRAC Registration. This is a first step in bringing digital asset platforms within the financial services framework of the country.
Creating a Licensing & Compliance Regime
On Sunday, Australian lawmakers released the proposed Corporations Amendment Bill (Digital Assets Framework). The bill amends the Corporations Act and ASIC Act in order to create a licensing regime and compliance regime for cryptocurrency operations, including businesses who hold or manage digital tokens for clients.
The details of the proposal requires operators of digital asset platforms, tokenized custody services and tokenized custody services must hold an Australian Financial Services License. They must also adhere to asset-safety standards and meet disclosure obligations when onboarding retail customers. The existing financial services laws will apply to intermediaries who deal with customer assets, and they must adhere to the definitions of core concepts in the proposal, such as “digital tokens,” digital asset platforms,” or “tokenized custodial platforms.”
Lawmakers Take a U-Turn
The latest event marks an important change in the Australian Senate’s decision regarding the crypto licensing bill. In 2023, lawmakers rejected the Digital Assets (Market Regulation Bill) citing lack of details, international alignment and premature timing. They now support the 2025 version which aims at mandating AFSL licensing, modernizing frameworks and providing firms with a 6-month transition period once the bill becomes law.
Related Australia Approves Stablecoin AUDD for XRPL and XRP Price Stable
