Australian Senate committee backs bill to license crypto exchanges and tokenisation platforms
Australia’s Senate Economics Legislation Committee has recommended passage of the Corporations Amendment (Digital Assets Framework) Bill 2025, moving the country closer to licensing digital asset platforms (DAPs) and tokenised custody platforms (TCPs) under the Australian Financial Services Licence (AFSL) regime. The bill brings most centralized exchanges and token custody services that hold client assets into ASIC’s remit, requiring compliance with custody and settlement standards, tailored retail disclosure rules, and platform-specific conduct and governance requirements. Small providers with annual turnover below A$10 million (~US$7m) and some public blockchain infrastructure are exempt. Industry groups warned that broad definitions of “digital token” and a “de facto/factual control” test risk catching wallet software and modern key‑management solutions such as MPC; Ripple and others asked for clearer carve-outs where services cannot unilaterally transfer assets. The committee acknowledged these concerns but recommended the Treasury refine definitions and perimeter issues via delegated regulations rather than rewriting the bill. Coinbase Australia welcomed the step but urged action on persistent de‑banking risks. With committee backing, the bill will proceed to the full Senate for debate and a final vote. Key SEO keywords: Australia crypto regulation, digital assets framework, AFSL, crypto exchange licensing, tokenisation.
Neutral
The bill increases regulatory clarity by bringing centralized exchanges and tokenised custody services into the AFSL regime, which is likely to reduce legal uncertainty and improve long‑term institutional confidence — a constructive factor for crypto markets. However, near‑term price impact is likely limited because the change primarily affects licensing, compliance costs, and market access rather than token fundamentals. Short‑term volatility could occur for assets tied to affected platforms if the final regulations widen or narrow the perimeter (for example, by capturing MPC wallet providers), or if enforcement leads to platform exits. Overall, clearer rules are positive for institutional adoption but impose compliance burdens on service providers; that combination points to a neutral net price impact on mentioned cryptocurrencies in the short to medium term, with potential longer‑term bullishness if the regime attracts more institutional flows and reduces custody risk.