An Australian Senate committee has recommended advancing legislation to integrate cryptocurrency platforms and custody services into the country's financial services framework. The proposal, detailed in a report by the Senate Economic Legislation Committee, seeks to amend the Companies Act and the ASIC Act to establish a licensing and compliance system for businesses managing digital tokens. Under the proposed framework, digital asset platforms and custody service operators would need to obtain an Australian Financial Services License (AFSL) and adhere to asset protection and disclosure standards when dealing with retail clients. The legislation aims to address regulatory gaps by applying existing financial services laws to intermediaries holding clients' digital assets, rather than regulating blockchain technology itself. If enacted, the bill would allow a six-month transition period for providers currently without an AFSL.