An Australian Senate committee has backed proposed legislation to integrate cryptocurrency platforms and custody providers into the country’s financial services framework.

The Senate Economics Legislation Committee said in a report published Monday that the proposed Corporations Amendment (Digital Assets Framework) Bill 2025 would modernize digital-asset oversight with traditional market safeguards to protect consumers.

The framework seeks to establish a licensing and compliance system for digital token managers by amending the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001.

The proposal targets firms that hold digital assets on behalf of customers, bringing them under existing financial services rules instead of attempting to regulate the underlying blockchain infrastructure. Should the measure become law, firms without an AFSL would be given six months to obtain the required authorization and comply with the new framework.

Crypto exchanges operating in Australia are already required to register with the country’s financial intelligence agency, the Australian Transaction Reports and Analysis Centre, as digital currency providers before offering exchange services.