Australia pushes digital asset platforms toward financial services licensing

Australia is preparing to regulate crypto exchanges and tokenization platforms under the national financial services framework. The Senate Economics Legislation Committee recommended passing the Corporations Amendment Digital Assets Framework Bill 2025. Consequently, the decision moves the country closer to a formal licensing regime for digital asset operators.

Industry groups warn about definitions affecting blockchain infrastructure providers

Legal and technology groups raised concerns about several definitions used in the draft legislation. These concerns focus mainly on the terms digital token and factual control. Industry experts warned that broad interpretations could capture services that only provide infrastructure.

Piper Alderman highlighted potential issues involving wallet software and multi-party control systems. The firm explained that some security architectures rely on distributed key management. Under the bill’s wording, such systems could face unintended regulatory treatment.

Ripple Labs also commented on the framework and supported the concept of regulation based on asset control. However, the company argued that modern wallet security structures require more precise legal language. Multi-party computation wallets, for example, distribute key fragments across multiple entities.

The company warned that technology providers holding one key fragment might appear as custodians under a strict interpretation. That outcome could classify infrastructure providers as financial service operators. Therefore, industry representatives urged lawmakers to clarify that unilateral asset transfer determines factual control.

Committee backs Treasury approach while bill moves toward Senate vote

Despite industry concerns, the committee supported the Treasury’s overall regulatory approach. Lawmakers acknowledged the technical feedback but chose to address details through later regulations. This method allows adjustments without changing the bill’s main structure.

Coinbase welcomed the committee’s recommendation and described the development as progress for the digital asset sector. The company noted that Australia holds strong capital resources and technical talent in blockchain development. Clear regulatory structures could therefore support industry growth and market confidence.

However, the company also pointed to ongoing banking access challenges affecting crypto businesses. Some firms still face account closures or service restrictions from financial institutions. The company urged policymakers to implement earlier recommendations from national financial regulators.

With committee approval secured, the legislation now proceeds to debate within the Senate. Lawmakers will review the proposal before holding a final vote on the framework. If passed, the rules could reshape how digital asset platforms operate within Australia’s financial system.