Australia’s Senate Economics Legislation Committee has recommended passing a bill establishing a licensing framework for cryptocurrency exchanges. The proposed law would require digital asset platforms holding customer funds to obtain a financial services license, aiming to increase oversight after high-profile collapses like FTX. The committee acknowledged industry concerns about definitions but sided with refining the rules through regulations later.
Australia’s Senate Economics Legislation Committee has backed a bill requiring crypto exchanges to comply with the country’s financial services regime. The move brings Australia closer to a bespoke licensing framework for digital asset platforms.
The bill, first introduced by Assistant Treasurer Daniel Mulino in November 2025, would treat these platforms as financial products under existing law. This would push most centralized exchanges into the Australian Financial Services Licence regime.
Licensed platforms must meet custody standards set by the Australian Securities and Investments Commission (ASIC) and comply with tailored disclosure rules. Small providers with annual transaction thresholds under $7 million and some public blockchain infrastructure are exempt.
Industry groups warned that the bill’s broad definitions could inadvertently include wallet software providers. Ripple Labs backed “control” as the appropriate regulatory nexus but argued the bill needed to accommodate modern security architectures.
The committee acknowledged these concerns but sided with Treasury’s plan to refine the perimeter through future regulations. Coinbase Australia director John O’Loghlen welcomed the recommendation as an important step.
“An important step for Australia’s standing in the global digital economy,” O’Loghlen stated in an email. He also warned that “the anti-competitive practice of debanking is rampant” and urged the government to prioritize addressing it.
With the committee’s backing, the bill now moves to the Senate for debate and a final vote. The proposed framework aims to close gaps in oversight of platforms that hold customer assets.
