An Australian Senate committee recommends that the country advance legislation on a crypto framework.

PANews reported on March 16 that, according to Decrypt, the Australian Senate Economic Legislation Committee released a report supporting a legislative proposal to include cryptocurrency platforms and custody services within the country's financial services regime. The bill would amend the Companies Act and the ASIC Act to establish a licensing and compliance system for businesses holding or managing digital tokens on behalf of clients.

Under the framework, digital asset platforms and tokenized custody service operators will generally be required to hold an Australian Financial Services License (AFSL), comply with asset protection standards, and meet disclosure requirements when accepting retail clients. The bill aims to fill a regulatory gap by subjecting intermediaries holding clients' digital assets to existing financial services laws, rather than regulating the blockchain technology itself. If passed, it will provide a six-month transition period for providers not yet holding an AFSL.