Australia Prepares to Open New Legal Door for Crypto Regulation

The Australian Senate’s Economics Legislation Committee has made a significant decision for the crypto industry. In a report released at the beginning of 2025, the committee approved the Corporate Amendments (Digital Asset Framework) Bill 2025. Once enacted, this law will completely change how crypto service providers are regulated in the country.

New Crypto Governance System for Digital Assets

The Senate committee’s approval means Australia is moving toward updating its current financial laws. Through amendments to the Corporations Act 2001 and the ASIC Act, this law will establish a clear regulatory framework for digital assets.

The most important aspect of this new law is that it will bring crypto platforms and custody service providers under licensing requirements similar to traditional financial markets. Companies that handle or store digital assets for users will need to obtain an Australian Financial Services License (AFSL). However, this law does not directly regulate blockchain technology itself.

Six-Month Preparation Period for Crypto Companies

If this bill is finally passed, all affected crypto businesses will be given time to comply with the new requirements. Companies that do not already hold an AFSL will have six months to obtain the necessary license and adhere to the new rules.

ASIC has already clarified that companies providing digital asset services have existing responsibilities. But this new bill will create a straightforward and clear regulatory framework for crypto platforms, making it easier for everyone to understand which rules apply to whom.

Strengthening the Existing AUSTRAC Registration System

This new law will not be a completely new regime for crypto exchanges in Australia. All companies offering digital currency exchange services in the country are already required to register with AUSTRAC. Operating without this registration is a legal offense.

Therefore, the new bill will not start regulation from scratch. Instead, it will add a new layer to the existing AUSTRAC registration and anti-fraud requirements. This means crypto exchanges and custody firms will still need to comply with AML/CFT regulations, along with new rules related to market conduct and investor protection.

This two-tiered approach will bring clarity to the crypto industry. Exchanges, custody service providers, and investors will know which company falls under which regulatory authority. Currently, the bill is pending before the Senate and will take some time to become law.