The Australian Senate committee recommends the country to advance cryptocurrency framework legislation

According to market news, the Australian Senate Economic Legislation Committee has released a report supporting the legislative proposal to include cryptocurrency platforms and custodial services in the country's financial services system.

The bill will amend the Corporations Act and the ASIC Act to establish a licensing and compliance regime for businesses that hold or manage digital tokens on behalf of clients. Under the framework, digital asset platforms and tokenized custodial service operators will generally be required to hold an Australian Financial Services License, comply with asset protection standards, and meet disclosure requirements when accepting retail clients. The bill aims to fill regulatory gaps, ensuring that intermediaries holding clients' digital assets are governed by existing financial services laws rather than regulating the blockchain technology itself. If passed, it will provide a six-month transition period for providers that do not yet hold an AFSL.