Australia may require financial licenses for crypto platforms
Australia’s Senate Economics Legislation Committee has recommended passing a bill that would introduce mandatory licensing for cryptocurrency platforms. The initiative is part of the country’s broader strategy to establish a comprehensive regulatory framework for the digital asset market.
In its report, the committee stated that the Corporations Amendment (Digital Assets Framework) Bill 2025 could significantly improve oversight of the crypto industry and strengthen consumer protections.
Under the proposed rules, companies operating digital asset platforms or tokenized custody services would be required to obtain an Australian Financial Services Licence (AFSL). This would effectively place them under the same regulatory framework as other financial service providers.
Regulators emphasized that the legislation is not aimed at controlling blockchain technology itself. Instead, it focuses on intermediaries that hold customer funds or facilitate crypto trading, which authorities consider the primary source of potential risks for users. The bill also seeks to clearly define key concepts such as “digital tokens” and introduce rules governing asset custody, transaction execution, and disclosure requirements for retail investors.
Industry response
The committee said most industry participants welcomed the government’s efforts to modernize the regulatory framework and provide clearer rules for market participants. Submissions were received from crypto exchanges, fintech associations, and legal firms.However, some stakeholders expressed concerns about the breadth of certain definitions, particularly terms such as “digital token,” “possession,” and “factual control.” They warned that these definitions could unintentionally affect infrastructure providers or non-custodial services.
The bill was introduced by Australia’s Treasury in November 2025. It passed its third reading in the House of Representatives in February 2026 before being referred to the Senate for review. If ultimately adopted, companies that do not yet hold the required financial license would be given a six-month transition period to comply with the new rules.
Crypto regulation in Australia
In recent years, Australia has been actively working to create a clearer legal framework for digital assets. The government aims to balance financial innovation with stronger investor protection and market integrity. Authorities have already introduced regulatory measures designed to increase transparency, strengthen consumer protection, and address potential risks within the crypto ecosystem.In addition, Australia’s financial intelligence agency has launched an investigation into the country’s rapidly expanding network of cryptocurrency ATMs, citing concerns related to money laundering and terrorist financing risks.
Despite these efforts, a comprehensive framework regulating crypto platforms as financial institutions has not previously existed in the country. The new bill is expected to become a key element of Australia’s broader strategy to build a full regulatory system aligned with global standards and capable of competing with major crypto hubs such as the European Union, Singapore, and Hong Kong.
Earlier it was reported that Pepperstone launched a regulated spot cryptocurrency trading platform in Australia.
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