Australia is on the brink of significant regulatory advancements in the digital economy with its new crypto platform licensing bill. The Australian Senate Economics Legislation Committee has endorsed the Corporations Amendment (Digital Assets Framework) Bill 2025, which aims to bring crypto exchanges and tokenization platforms in line with the country’s financial services regime.
Understanding the New Licensing Bill
The proposed legislation, introduced by Assistant Treasurer and Financial Services Minister Daniel Mulino, seeks to categorize Digital Asset Platforms (DAPs) and Tokenised Custody Platforms (TCPs) as financial products under the Corporations Act and the Australian Securities and Investments Commission (ASIC) Act. This move aims to close regulatory gaps exposed by the collapse of major digital asset companies like FTX.
Industry Concerns and Support
While there is substantial support for the bill, industry groups have raised concerns about its broad definitions. For instance, law firm Piper Alderman cautioned that terms like “digital token” and “factual control” might inadvertently include wallet software providers and infrastructure setups in multi-party configurations. Ripple Labs supports the control-based approach but suggests refining the bill to accommodate modern security architectures.
The committee has acknowledged these issues and plans to address them through future regulations rather than altering core definitions. This strategy reflects a balance between industry needs and regulatory oversight.
Market Implications and Next Steps
Coinbase Australia director John O’Loghlen commended the committee’s recommendation, emphasizing its potential to enhance Australia’s position in the global digital economy. However, he highlighted the persistent issue of debanking, urging the government to prioritize measures to counter it.
The bill, now poised for Senate debate, represents a pivotal step for Australia in establishing a comprehensive framework for digital asset platforms, fostering innovation while ensuring market stability.
