Australia’s Senate Economics Legislation Committee has reached its reporting deadline on the Corporations Amendment (Digital Assets Framework) Bill 2025, a landmark piece of legislation that would bring custodial digital asset businesses under the country’s existing financial services licensing regime for the first time.
The bill, introduced by the Albanese government on 26 November 2025, was referred to the Senate Economics Legislation Committee on 5 February 2026 for inquiry and report. The committee’s reporting date of 16 March 2026 marks a key procedural milestone, though the committee’s formal recommendation has not yet been published at the time of writing.
Industry bodies have signaled broad support for the legislation’s intent. The Law Council of Australia’s Business Law Section said its committees “broadly welcome the fact that the Bill has been introduced to the Parliament,” while noting they “nevertheless wish to raise technical issues with the Bill as drafted.”
What the Digital Assets Framework Bill Would Change
The bill would create two new categories of regulated financial products: digital asset platforms and tokenised custody platforms. Both would fall under Australia’s existing Australian Financial Services Licence (AFSL) regime, giving the Australian Securities and Investments Commission (ASIC) direct supervisory and enforcement authority over covered platforms.
According to the Parliamentary Library’s Bills Digest, platforms would face tailored licensing and conduct obligations. Businesses would have 18 months to comply after the legislation commences.
The framework includes a low-risk exemption tier. Platforms handling no more than A$5,000 per individual customer and processing under A$10 million in annual transactions would qualify for lighter regulatory treatment, a design intended to avoid crushing smaller operators with compliance costs built for large exchanges.
The government has framed the broader digital asset reform package as an economic opportunity. Treasury estimated the reforms could unlock approximately A$24 billion in annual productivity and cost savings across the financial sector.
Why It Matters for Australia’s Crypto Industry
Australia has lacked a dedicated regulatory framework for digital assets, leaving crypto businesses operating in a grey zone between existing financial services laws and ASIC’s evolving enforcement posture. The bill represents the most concrete legislative step yet toward closing that gap.
For exchanges and custodial platforms operating in Australia, the AFSL requirement would mean formal licensing, ongoing compliance obligations, and direct regulatory oversight. That carries costs, but also provides the legal certainty that larger institutional participants have cited as a prerequisite for deeper engagement with Australian crypto markets.
The regulatory push comes as ASIC has separately stepped up enforcement actions against unlicensed financial advice in the digital asset space, including warnings about finfluencers and AI-generated financial guidance. A formal licensing regime would give the regulator clearer statutory tools for that work.
Consumer protection is another stated driver. The bill’s conduct obligations would apply specifically to how platforms handle customer assets, an area that has drawn global scrutiny following high-profile exchange failures. Platforms dealing with targeted attack risks and custody vulnerabilities would face explicit regulatory expectations.
What Comes Next
With the committee’s reporting date now reached, the next step is publication of the committee’s findings and any recommendations. If the committee endorses the bill, it would return to the Senate floor for debate and a vote.
The Law Council’s submission flagged several technical drafting concerns that could shape amendments. Industry commentary reviewed during the inquiry period was broadly constructive about the need for a framework, while pushing for clarification on specific provisions.
The 18-month compliance window means that even if the bill passes promptly, affected platforms would not need to hold an AFSL for digital asset activities until late 2027 or early 2028, giving the industry a meaningful runway to prepare.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.
