Australia’s Senate Approves Crypto Crackdown-What It Means for Your Wallet

by

Australia Advances Crypto Regulation With Senate Support for Digital Asset Framework

Key Takeaways

  • Australia’s Senate Economics Legislation Committee recommended passing the Digital Assets Framework Bill 2025.
  • The bill would introduce licensing requirements for crypto exchanges and tokenized custody platforms.
  • Platforms holding customer assets would be regulated under Australia’s existing financial services licensing regime.

This new law would force cryptocurrency exchanges and platforms that create digital tokens to follow the same rules as other financial companies, representing a major change in how these assets are overseen.

As an analyst, I see this proposal as a clear attempt to regulate crypto platforms in a way that aligns with traditional finance. The driving force behind this is the need to close the regulatory gaps exposed by the failures of companies like FTX and other exchanges – specifically, the lack of adequate protection for customer assets. Essentially, policymakers want to ensure crypto firms are held to the same standards as banks and other established financial institutions.

As a researcher following the crypto space, I’ve been observing the evolving regulatory landscape. The Australian Securities and Investments Commission (ASIC) has made it clear they believe crypto assets shouldn’t be categorized based on the technology behind them. Instead, they want to regulate them based on *how* they’re actually used – essentially, their economic function. This means if a crypto asset behaves like a security, it will be regulated as one, regardless of whether it’s built on blockchain or some other technology.

Industry groups are concerned the bill’s wording could mistakenly include important infrastructure like digital wallets and multi-party computation systems.

New Licensing Framework for Digital Asset Platforms

A new bill introduced in November 2025 by Assistant Treasurer Daniel Mulino aims to create specific rules for companies dealing with digital assets, including platforms that trade them and those that hold them securely. These companies are referred to as digital asset platforms and tokenised custody platforms.

The new plan would classify these platforms as financial products, bringing them under the regulation of the Corporations Act and ASIC. This means most centralized cryptocurrency exchanges and companies that store customers’ crypto would need to get a license to operate in Australia.

Platforms that want to operate legally would need to follow specific rules set by the Australian Securities and Investments Commission. These rules cover things like protecting customer assets, how transactions are finalized, and how the platform is managed.

Companies would also have to follow specific rules for sharing information with everyday investors, making sure they understand the risks involved, how their assets are kept safe, and how the platform works.

The bill does offer some exceptions. Smaller payment platforms – those processing less than 10 million Australian dollars (around $7 million) per year – and specific blockchain infrastructure companies won’t have to meet the same licensing rules.

Legislators are aiming to find a middle ground that safeguards consumers while still allowing the digital asset industry to develop and grow.

ASIC Pushes “Function Over Technology” Approach

Regulators are indicating a significant change in how they oversee the cryptocurrency industry. Rhys Bollen, who leads fintech at ASIC, explained at the Melbourne Money & Finance Conference in March 2026 that crypto assets should be regulated based on what they *do* economically, not just the technology behind them.

I’ve been following the commentary from Bollen, and his take on blockchain really resonated with me. He described it as the new underlying infrastructure for finance – basically, it’s handling the same old financial stuff like payments, investing, and managing risk, but in a completely new way. It’s not about *new* finance, it’s about how finance *works* being updated.

ASIC believes crypto companies shouldn’t get preferential treatment just because they use blockchain. They should be held to the same standards as other financial businesses.

Regulators argue that companies offering financial services like holding assets, trading, or completing transactions should be governed by current financial regulations, no matter if they use traditional banks or new, decentralized technologies.

This idea differs from previous discussions in the crypto world, which often claimed that digital assets needed a completely separate set of rules and regulations.

Industry Groups Raise Concerns Over Broad Definitions

Although the Senate committee approved the bill, some businesses cautioned that its language might lead to unforeseen problems.

Lawyers and tech companies are worried that the bill defines “digital tokens” and “controlling influence” too broadly.

The legal firm Piper Alderman, as noted in the committee’s report, cautioned that the proposed definitions could mistakenly categorize companies providing infrastructure – such as those creating wallet software – as regulated custodians.

This is especially important for newer security systems like multi-party computation (MPC) wallets. These wallets improve security by sharing the pieces of a secret key between multiple people, so no single person can control the funds alone.

Ripple Labs, a blockchain company, believes the proposed legislation needs to be more specific. They argue that true control over digital assets only exists when someone can move them without needing the customer’s permission.

Without this clear definition, technology companies that only have part of the encryption key could be mistakenly subjected to the regulations.

The committee heard and understood the concerns raised, but they agreed with the Treasury Department that specific details could be worked out later through regulations, without making major changes to the bill itself.

What Happens Next

Now that the Senate committee has approved it, the Digital Assets Framework Bill will be discussed and voted on by the full Senate.

If approved, this law would create one of the most thorough sets of rules for cryptocurrency in the Asia-Pacific area.

Digital asset platforms will need to be licensed and follow specific rules by June 30, 2026, according to the new framework.

Proponents believe the new regulations could significantly boost the economy. They estimate the changes could lead to as much as A$24 billion in yearly productivity improvements by making it easier to use digital assets and modernize financial systems.

The law also carries significant penalties for breaking the rules, potentially including fines as high as 10% of a company’s yearly revenue.

With Australia nearing the launch of its new crypto rules, other countries in the region will likely look to it as an example when creating their own regulations in the future.

This article is for informational purposes only and shouldn’t be considered financial, investment, or trading advice. Coindoo.com doesn’t support or suggest any particular investment or cryptocurrency. Always do your own research and talk to a qualified financial advisor before investing.

Read More

2026-03-17 12:20