Australian Senate backs bill on crypto and tokenized custody

Australia’s Senate Economics Legislation Committee endorsed the government’s Corporations Amendment (Digital Assets Framework) Bill in a report released by the panel. The proposal would classify digital-asset platforms and tokenized custody services as financial products under existing financial-services law. Most operators handling client tokens would need an Australian Financial Services Licence, with a six-month transition after the rules begin.

The committee detailed changes to the Corporations Act and the ASIC Act to set licensing and compliance obligations for businesses that hold or manage digital tokens for clients in Australia. The framework defines “digital tokens,” “digital asset platforms,” and “tokenized custody platforms,” and focuses on intermediaries that deal with customer assets rather than blockchain technology itself.

Platform operators would be required to meet asset-safeguarding standards and provide disclosures when onboarding retail customers. According to the report, the goal is to update oversight and address gaps in consumer protection that have allowed firms to manage large amounts of client assets without safeguards common in traditional finance.

The initiative follows earlier measures, including mandatory AUSTRAC registration for crypto exchanges and Treasury consultations on bringing digital-asset platforms within financial-services law. With the report delivered, the bill now moves to the next stages of the parliamentary process.

Companies have begun preparing for the expected rules. Ripple is seeking an AFSL through a proposed acquisition of BC Payments to operate within Australia’s licensed framework. The company indicated the license would allow it to oversee settlement, connect customers with local payout partners, and route transactions through a single integration. Meanwhile, Binance restored AUD deposits and withdrawals for users in Australia.

Industry groups have voiced support for clearer rules. Kate Cooper, CEO of OKX Australia, linked legislative clarity to productivity gains, citing research estimating digital-finance innovation could add up to $24 billion a year, or about 1% of GDP. “Legislative clarity could be the foundation for a significant increase in Australia’s productivity standards,” Cooper stated.