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- Australia is moving forward with a new licensing framework for crypto platforms and custody providers.
- Major European banks are expanding crypto trading and custody services for clients.
- A euro-backed stablecoin project led by European banks could launch in 2026.
Governments and financial institutions across the globe are accelerating their engagement with digital assets. While Australia moves closer to introducing a formal regulatory framework for crypto platforms, major banks across European Union are increasingly integrating cryptocurrency services into their offerings.
Together, these developments highlight a broader shift in the global financial system, where regulation and institutional adoption are evolving simultaneously as digital assets move further into the mainstream.
Australia Moves Toward Clearer Crypto Regulation
Australia’s push for crypto regulation took a step forward after the Senate Economics Legislation Committee backed the Corporations Amendment (Digital Assets Framework) Bill 2025.
The proposal aims to bring cryptocurrency platforms and digital asset custody providers under the country’s existing financial services rules. If approved, companies that hold or manage digital assets on behalf of customers would be required to obtain a financial services license and comply with regulatory obligations similar to traditional financial institutions.
The framework would amend both the Corporations Act 2001 and the ASIC Act 2001, creating clearer oversight for crypto-related financial services.
Importantly, the bill focuses primarily on businesses that manage customer assets rather than attempting to regulate blockchain technology itself. Firms without an Australian Financial Services Licence would have six months to secure authorization once the legislation becomes law.
Existing Rules Already Apply to Crypto Exchanges
Australia’s crypto sector is not operating in a regulatory vacuum. Digital currency exchanges already must register with AUSTRAC, the country’s financial intelligence unit responsible for enforcing anti-money-laundering laws.
Operating without AUSTRAC registration is illegal, meaning exchanges must already comply with certain compliance and reporting standards.
The proposed legislation would build on those existing requirements by introducing clearer licensing rules and market conduct standards for companies handling digital assets.
Supporters say the approach could provide stronger consumer protections while giving crypto businesses more certainty about regulatory expectations.
Europe’s Largest Banks Are Moving Into Crypto
While regulators refine oversight frameworks, Europe’s banking sector is increasingly embracing crypto services.
According to recent industry data, several major institutions—including Santander, BBVA, and KBC Group—have already launched cryptocurrency trading or custody services for clients.
Meanwhile, Deutsche Bank has announced plans to offer crypto custody, and DZ Bank has received regulatory approval to deploy its meinKrypto platform.
Still, only eight of the European Union’s 20 largest banks currently offer live crypto services at scale. Many others remain in early testing or planning phases.
Stablecoins and Financial Competition
A key driver behind the shift is the growing role of stablecoins in digital finance. These blockchain-based assets enable near-instant settlement and continuous liquidity, potentially reshaping cross-border payments.
Nearly all stablecoins today are denominated in US dollars. In response, a consortium of European banks—including BNP Paribas, ING, and UniCredit—is developing a euro-backed stablecoin project called Qivalis, which could launch in 2026.
From Australia’s regulatory push to Europe’s growing institutional adoption, the global financial system is rapidly adapting to the rise of digital assets. As governments create clearer frameworks and banks build new crypto infrastructure, the gap between traditional finance and blockchain technology continues to narrow.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
