Crypto Rules Get a Boost in Australia

Australia’s Senate Economics Committee has pushed forward a new bill that would force crypto exchanges and token platforms to follow the same rules as traditional banks. The proposal, called the Corporations Amendment (Digital Assets Framework) Bill 2025, aims to close loopholes that let digital asset firms operate with little oversight after high‑profile crashes like FTX. The bill treats “digital asset platforms” (DAPs) and “tokenised custody platforms” (TCPs) as financial services under the Corporations Act and the Australian Securities and Investments Commission Act. As a result, most centralised exchanges and custody businesses that hold customer money would need an Australian Financial Services Licence. They must meet strict custody, settlement and disclosure standards, and follow specific conduct rules. Small operators with yearly trades below 10 million Australian dollars or certain public blockchain services would be exempt.Industry voices have cautioned that the bill’s broad definitions could catch wallet software and infrastructure providers. A law firm warned that key‑shard wallets used in multi‑party computation might be mislabelled as regulated custodians. The regulator’s “control” test is meant to identify who can move funds without a client, but the wording may be too vague. The committee said it would refine these rules later rather than change the core definitions now. Coinbase Australia’s managing director praised the move as a step toward a clearer regulatory environment. He said Australia has the talent to lead in digital assets but needs solid rules to attract investment. He also warned that banks still cut ties with crypto firms, a practice he calls “debanking, ” and urged the government to act on earlier recommendations. With the committee’s approval, the bill will now go to the Senate for debate and a final vote. The outcome could shape how crypto services operate across the country.