Coalition Senators' Additional Comments
1.1These reforms are long overdue.
1.2Australia is falling behind in the global revolution in digital finance technologies.
1.3Digital finance technologies – including cryptocurrencies, stablecoins, tokenised assets and blockchain-based financial infrastructure – represents a major economic opportunity for Australia. On 3 March 2026, the Digital Finance Cooperative Research Centre reported that digital finance innovation could contribute up to $24 billion to the Australian economy annually by 2030.
1.4Financial markets around the world are changing. New technologies are enabling assets to be issued, traded, and settled using digital infrastructure – and Australia’s old-world approach is making us a laggard on the world stage.
1.5The Corporations Amendment (Digital Assets Framework) Bill 2025 takes an important step toward modernising Australia’s regulatory framework and bringing digital asset platforms within Australia’s financial services laws.
1.6The Coalition set out a comprehensive roadmap for these reforms in our December 2021 Payments and Crypto Assets Reform Plan and took a policy to fast-track this plan within 100 days at the last election. Our plan recognised that digital asset markets were growing rapidly and that Australia needed clear rules to protect consumers while allowing legitimate businesses to operate and invest. It foresaw that without swift action Australia would be left behind – and that delays are putting consumers at risk and sending innovation offshore.
1.7Between release of the roadmap in 2021 and today, Australia has experienced a prolonged period of regulatory uncertainty. Meanwhile, peer jurisdictions seized the moment and progressed bold reform for digital asset platforms, including the United Kingdom, Singapore, the European Union, and the United States.
1.8Australia, by contrast, largely relied on enforcement action by regulators to define the regulatory perimeter. Regulators like ASIC are well equipped to enforce rules, but they are not best placed to weigh broader economic policy considerations.
1.9Coalition Senators hope this Bill will send a clear signal to regulators and begin restoring confidence for the sector to invest in Australia. However, several submissions made clear that they are concerned it requires amendment.
1.10The framework established by the Bill leaves many operational details to future regulations and regulatory guidance. This means that practical operation of the regime will depend heavily on decisions that have not yet been made and are not available for industry or the Parliament to consider.
1.11Coalition Senators therefore recommend that operation of the framework be subject to a statutory review within two years of commencement. This will ensure industry has a clear opportunity to voice any concerns about future regulations.
1.12It will also allow Parliament to assess whether the final regime is functioning as intended or whether further reforms are required to ensure Australia remains competitive.
1.13The Coalition has consistently led the development of policy to support digital asset innovation and position Australia as a regional financial centre. In September 2020, the Senate established the Select Committee on Australia as a Technology and Financial Centre. The Committee was chaired by Senator Andrew Bragg and conducted an extensive inquiry throughout 2020 and 2021 into Australia’s regulatory settings for financial technology and digital assets.
1.14The Committee reported in October 2021 and produced a detailed reform blueprint for digital assets, digital custody and tokenised financial infrastructure. Its recommendations included establishing a licensing regime for digital asset exchanges and custody providers and modernising Australia’s financial services laws to accommodate emerging technologies.
1.15Building on that work, the Coalition Government released the Payments and Crypto Assets Reform Plan in December 2021, setting out a comprehensive roadmap to modernise Australia’s payments system and establish a regulatory framework for digital asset markets.
1.16The plan recognised that digital asset markets were growing rapidly and that Australia’s regulatory framework needed to evolve to provide clear rules for businesses while ensuring appropriate consumer protections.
1.17The Coalition also set out a broader ambition to position Australia as a regional financial centre, recognising that modern financial infrastructure and emerging financial technologies will be critical to Australia’s future competitiveness.
1.18The Coalition was ambitious. Had those reforms been implemented quickly, Australia would have been among the first advanced economies to establish a comprehensive regime for regulating digital asset platforms. We would have more jobs and more investment. Instead, the sector experienced several years of uncertainty. Stakeholders told the Coalition that this plan gave them confidence.
1.19During the 2025 federal election campaign, the Coalition reaffirmed this commitment and committed to accelerate the development of a clear regulatory framework for digital asset markets and emerging financial technologies – given the slow progress under Labor. This would have seen these reforms delivered before September 2025.
1.20Digital assets are an increasingly important part of global financial markets and could represent up to $24 billion annually for the Australian economy by 2030. Jurisdictions that provide clear regulatory frameworks will attract investment, innovation and talent. Those that don’t will not reap these economic benefits.
1.21Coalition Senators view this legislation as an important – but late – step in positioning Australia to become a regional leader in the global digital finance economy. We also recognise that Australia is now starting from behind and there will need to be more ambition from Government to catch up.
1.22One of the unusual aspects of these reforms is that the industry is actively calling for regulation. They are not seeking to avoid it – they know that becoming properly regulated participants in our financial system legitimises their businesses and puts them on the best footing to compete with traditional finance.
1.23Industry stakeholders told the Committee they want clear rules so they can operate with certainty and build businesses in Australia. They want regulation that is clear, workable, and tailored to the reality of their industry and its technology.
1.24In the absence of legislation, ASIC has relied heavily on enforcement action and litigation to determine how existing financial services laws apply to digital asset businesses. This approach has been described as “regulation by litigation.”
1.25Regulation by litigation is an expensive and uncertain way to define the regulatory boundaries of a new industry. For smaller businesses and start-ups, the cost of defending enforcement proceedings, and associated uncertainty can be significant – even if they are ultimately successful through the courts.
1.26It is unfortunate that because of delays in delivering a clear legislative framework, businesses have had to wait for the outcome of court proceedings to understand how the law might apply to their activities. Parliament needs to do better.
1.27Waiting for legislative certainty is not how a modern financial system should operate.
1.28Clear rules should come from legislation passed by Parliament – reflecting community values – and supported by guidance from regulators. This approach provides greater certainty for businesses, clearer expectations for regulators, and greater confidence for investors.
1.29We heard from industry that while ASIC has often not been successful in litigation, the uncertainty created by these cases continues to affect investment decisions. Without clear legislation there will always be uncertainty about how existing laws apply.
1.30This Bill represents an important milestone toward addressing that uncertainty. It reflects years of consultation with industry participants, regulators, and policymakers.
1.31Coalition Senators acknowledge the significant work and advocacy for better outcomes undertaken by stakeholders across the sector to reach this point.
1.32Coalition Senators recognise that ASIC has a difficult role in juggling their broad responsibilities: regulating emerging financial technologies, implementing Government reforms, and protecting consumers from fraud and scams.
1.33While ASIC is independent, they usually have firm backing in their strategic direction from the Government. However, this Treasurer has bizarrely vacated the field by not providing his expectations to ASIC. He is missing in action.
1.34The key mechanism for providing policy direction is the Statement of Expectations issued by the responsible Minister – in this case, the Treasurer. We note that as at 14 March 2026, the Treasurer has not provided his expectations of 5 out of 10 regulators – including ASIC – according to the Department of Finance’s Regulator Stocktake.
1.35Statements of Expectations outline the Government’s priorities for regulators and provide guidance on how regulators should balance enforcement, competition, and broader economic considerations. It is incredible that the Treasurer continues to ignore his responsibility to set the direction of ASIC and the ATO – two of the most important regulators in Australia.
1.36The Government should be embarrassed that ASIC continues to operate under the Statement of Expectations issued by former Treasurer Josh Frydenberg during the COVID-19 pandemic – which focused on supporting businesses through the pandemic.
1.37Without an updated statement of expectations, ASIC have been left to interpret how these priorities should be balanced. The Treasurer has effectively ceded his job to the regulator – despite receiving multiple drafts from his department already.
1.38Coalition Senators urge the Senate direct the Treasurer to provide updated Statements of Expectations to ASIC and the other regulators in his remit. This will assist ASIC to better manage their limited resources in line with Government expectations.
1.39 In addition to the lack of expectations for regulators, the Government is also sitting on more than 12 Parliamentary inquiries in the financial services space – covering important issues such as insurance affordability – without taking action.
1.40The Delivering Better Financial Outcomes (DBFO) reforms have also stalled. These reforms are particularly relevant to this legislation, as the Bill brings digital asset platforms within Australia’s financial services licensing framework, including obligations relating to financial advice. Delays in progressing the Delivering Better Financial Outcomes reforms therefore risk creating additional uncertainty for businesses and advisers seeking to operate within the framework established by this Bill. The Government must re-prioritise itself to deliver DBFO.
1.41Coalition Senators support the principles of this Bill. It takes an important step toward establishing a regulatory framework for digital asset platforms. However many of the operational details will be determined later through regulations and regulatory guidance.
1.42This includes matters such as licensing conditions, compliance obligations, and operational requirements for platforms. Crucial decisions that will shape how the regime operates in practice.
1.43Industry stakeholders told the Committee they are supportive of the framework, but remain cautious about the details that are still to come. After years of uncertainty – and litigation by the regulator – their caution is warranted.
1.44Coalition Senators agree that these details will matter. It is therefore appropriate that Parliament has the opportunity to consider the outcomes of a two-year statutory review once the full regime is in place.
1.45Digital finance technologies are developing faster than anyone predicted – and it is accelerating. Faster than the Coalition’s 2021 plan. Faster than Labor’s implementation of this plan five years later. We are lagging behind Singapore, the European Union, the United Kingdom, and the United States.
1.46Technologies evolve quickly. Business models evolve quickly. Markets evolve quickly. Our regulatory frameworks must keep pace if we are to eventually position Australia as a market leader – not a market follower.
1.47The Bill establishes an important foundation. But it will not be the final stage of reform in this sector – the framework established by the Bill leaves many operational details to future regulations and regulatory guidance. The Parliament does not have these regulations in front of them as we vote on this Bill.
1.48The Government is essentially asking the Parliament to agree to a framework without the detail. We’re ready to support that because progress is needed, but also want to make sure there is a clear opportunity for industry to make their concerns known to the Government once this regime is fully operational.
1.49A statutory review two years after commencement of this legislation will ensure Parliament can assess how this regulatory regime operates in practice. If the framework is working well, the review will confirm that. If improvements are required – those improvements will be identified. This is a sensible amendment that the Government should implement.
1.50Coalition Senators therefore recommend a statutory review of the regime within two years of commencement. This will allow industry participants, regulators, and consumer groups to provide feedback on how the framework operates in practice.
1.51The review will allow Parliament to consider evidence from industry, regulators and consumers once the regime has been operating in the real world.
1.52What is required is a more ambitious approach to the digital finance sector.
1.53Digital asset technologies are part of a broader transformation of global financial markets. Around the world, new technologies are improving payments systems, modernising market infrastructure and creating new ways to do business.
1.54These developments are not theoretical. They are happening now and more ambitious jurisdictions are seeking to capture these opportunities.
1.55Major financial institutions are exploring tokenised assets. Payments companies are experimenting with blockchain-based settlement systems. New forms of financial infrastructure are being built around the world.
1.56Australia should be a leader in this transformation – a rule-maker that other jurisdictions look to for leadership. Our financial markets are deep. Our regulators are respected. Our fintech sector is innovative and growing.
1.57The Treasurer has still not updated the Statements of Expectations for these regulators. This could set out the Government’s vision for how ASIC could support these innovative new sectors while protecting consumers.
1.58Coalition Senators remain ambitious for this sector. We provided a vision in 2021, wanted to accelerate it as part of our 2025 election campaign, and recognise industry are exceeding even the most optimistic assumptions.
1.59Australia should not simply follow reforms developed elsewhere. With the right leadership, Australia should be helping shape the future of digital finance be recognised as a global and regional leader.
1.60Australia had the opportunity to lead. When the Coalition released the Payments and Crypto Assets Reform Plan in 2021, the sector was growing rapidly and governments around the world were beginning to consider how to regulate it.
1.61At that moment, Australia had the chance to move early and position itself as a leading jurisdiction for digital finance innovation.
1.62Instead, after 2022 progress stalled. While Australia delayed, other jurisdictions implemented comprehensive regulatory frameworks and positioned themselves as destinations for investment.
1.63Industry stakeholders told the Committee that regulatory certainty is crucial. It is one of the most important factors when deciding where to establish operations. It makes sense. The last thing you want if you’re establishing a business is a Government that will pull the rug out from under you.
1.64Investment flows toward jurisdictions where the rules are clear. This Bill represents an opportunity to begin correcting that course. It must not be the end of reform.
1.65A number of stakeholders also raised technical issues with aspects of the framework established by the Bill and potential amendments.
1.66These issues relate to matters such as the precise scope of certain definitions, the application of licensing requirements to different types of digital asset services, and how particular activities will be treated under the regime.
1.67Digital asset markets are complex and rapidly evolving. Small differences in legislative drafting can have significant practical consequences for how businesses operate.
1.68Industry participants provided a range of views on these issues during the inquiry. Coalition Senators acknowledge these views.
1.69However, Coalition Senators are also conscious that this legislation establishes a high-level framework and that many of the operational details will be determined through regulations and regulatory guidance.
1.70After several years of delay, the priority must be to progress this legislation and establish the framework. Once the regime is fully operational with finalised regulations and guidance it will be much easier to assess these technical issues.
1.71For that reason, Coalition Senators consider that a statutory review within two years of commencement provides the most appropriate mechanism to assess whether further technical reforms are warranted.
1.72Beyond issues flagged in the majority report, there are broader concerns raised through submissions (including those of the Digital Economy Council of Australia) that “debanking” remains a significant issue for the sector.
1.73Debanking occurs when banks refuse to provide banking services to certain businesses or withdraw those services altogether. Without access to basic banking services, legitimate businesses cannot operate. At the same time, the banking industry is concerned about ensuring scams involving digital assets are not perpetuated.
1.74In practice, the problem often extends beyond traditional bank accounts to include restrictions on access to critical payment infrastructure such as payment rails and onboarding pathways to the banking system.
1.75Access to payment rails including services connected to Australia’s New Payments Platform (NPP) and related payment infrastructure can be restricted. In some cases, these restrictions can significantly limit a firm’s ability to onboard customers or facilitate transactions.
1.76Stakeholders point to examples where firms had access to banking infrastructure restricted or withdrawn, limiting their ability to connect Australian consumers to regulated platforms.
1.77This issue is not unique to Australia. However, it has become a significant barrier to competition and investment by digital asset firms operating in the Australian market.
1.78The introduction of a licensing regime for digital asset platforms should help address some of these concerns. Bringing these businesses within Australia’s financial services laws should provide banks with greater confidence when assessing risk.
1.79Licensing alone may not resolve the problem. Where regulated entities are denied banking services, particularly if they hold an Australian Financial Service Licence (AFSL), there is currently no requirement to be provided with clear reasons for that decision. This is important to support competition between legacy and emerging players in financial services.
1.80Requiring reasons to be provided, particularly where an entity is an AFSL holder and these reasons would not interfere with existing Anti-Money Laundering and Counter-Terrorism Financing (AMLCTF) obligations would improve transparency and help legitimate businesses understand what steps they need to take to maintain banking.
1.81Coalition Senators note that the Council of Financial Regulators has previously made recommendations that the Government agreed to regarding debanking. In practice, while the Government agreed to these recommendations they have not been implemented.
1.82Ensuring that legitimate and properly regulated businesses can access basic banking services is an important part of supporting competition and innovation in Australia’s financial system. The Government should consider practical reforms that improve transparency and reduce unnecessary barriers.
1.83Ensuring competition for legitimate and properly regulated businesses is an important part of supporting competition and innovation in Australia’s financial system.
1.84Coalition Senators support the Corporations Amendment (Digital Assets Framework) Bill 2025 Bill in principle.
1.85The Bill represents an important step toward providing regulatory certainty for digital asset businesses and bringing these activities within Australia’s financial services framework. Industry stakeholders that been consulting government hoping for this Bill to pass should be heard.
1.86However, much of the practical operation of the regime will depend on regulations and regulatory guidance that are not yet available to Parliament or industry. Coalition Senators therefore recommend:
Recommendation 1
1.87That the bill be amended to include a statutory review of the digital asset regulatory framework within two years after commencement of the bill. This review should examine how the regime operates in practice, including whether:
the new regulations are working as intended;
consumer protections are operating effectively;
the framework is supporting competition and innovation in Australia’s financial system; and
further reforms are required to ensure Australia remains competitive in global digital finance markets.
Recommendation 2
1.88That the Treasurer urgently provide updated Statements of Expectations to ASIC and other regulators within his remit.
Recommendation 3
1.89That the Government carefully consider the work of the Council of Financial Regulators on debanking and asses whether further measures are required to ensure that properly regulated digital asset businesses can access essential banking services.
1.90Digital finance is transforming financial markets around the world. Governments across the globe are updating their regulatory frameworks to reflect these developments and to attract investment in emerging financial technologies. These reforms are long overdue.
1.91Australia needs to catch up. This Bill begins that process by providing a clear regulatory framework for digital asset markets – butthis is coming years later than the Coalition initially envisioned back in 2021.
1.92Coalition Senators support the objective of providing clear rules for digital asset platforms and bringing these activities within Australia’s financial services framework. However, the framework established by this legislation will only become fully operational once the supporting regulations and regulatory guidance are developed.
1.93We therefore recommend a two-year statutory review to assess how the regime operates once it is fully implemented. The review will ensure that the framework can be evaluated once regulations are in place and industry participants can see how it operates in practice.
1.94With the right policy settings Australia has the potential to be a leading jurisdiction for digital finance innovation and reap up to $24 billion per year in additional economic activity.
1.95The Coalition is ambitious for the sector and for Australia. We will not stand by while Australia falls further behind in the global race for digital finance investment.
1.96The Coalition acknowledges and appreciates all contributors to this Bill.
Senator Kerrynne Liddle
Deputy Chair
Liberal Senator for South Australia
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