Headline: Australian Senate committee backs bill to fold crypto custody into mainstream financial rules
The Senate Economics Legislation Committee has thrown its support behind the Corporations Amendment (Digital Assets Framework) Bill 2025, signaling a push to bring crypto custody and token management squarely into Australia’s financial services regime.
What the bill would do
- Create a licensing and compliance framework for digital token managers by amending the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001.
- Target firms that hold or manage digital assets on behalf of customers, subjecting them to the same consumer protections and market safeguards used in traditional finance.
- Focus regulatory power on service providers and custodians rather than trying to regulate blockchain networks or underlying infrastructure.
Timing and practical impact
- If passed, firms that operate without an Australian Financial Services Licence (AFSL) would have six months to secure authorization and align with the new rules.
- Crypto exchanges in Australia already face a separate requirement to register with the financial intelligence agency AUSTRAC as digital currency providers before offering exchange services.
Why it matters
The committee’s endorsement reflects a broader trend: regulators are moving to integrate crypto services into existing financial law rather than creating a parallel, blockchain-focused rulebook. For custodians, exchanges and token managers, the bill would mean clearer compliance obligations—and potentially higher operational costs—but also greater legal certainty for businesses and consumers.
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