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

According to CoinDesk, the Senate Economics Legislation Committee said in a report published Monday (March 16) that the proposed Corporations Amendment (Digital Assets Framework) Bill 2025 would modernise oversight of digital assets by applying traditional market safeguards to protect consumers.

The framework aims 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 rather than attempting to regulate the underlying blockchain infrastructure.

If the measure becomes law, firms without an Australian Financial Services Licence (AFSL) must obtain the required authorisation and comply with the new framework within six months.

Australian crypto exchanges must already register with the country’s financial intelligence agency, the Australian Transaction Reports and Analysis Centre, as digital currency providers before offering exchange services.

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