Australia’s top finance sector regulator, the Australian Securities and Investments Commission (ASIC), has released an updated version of its guidance clarifying how the country’s existing financial services laws apply to digital assets.
In its October 29 statement, ASIC clarified that stablecoins, wrapped tokens (tokenized versions of another digital asset on a different blockchain), tokenized securities, and digital asset wallets are among the digital asset products it considers financial products under its updated guidance.
Consequently, companies offering such products will henceforth need to obtain a license from the regulator.
“Distributed ledger technology and tokenisation are reshaping global finance,” said ASIC Commissioner Alan Kirkland. “Many widely traded digital assets are financial products under current law – and will remain so under the Government’s proposed law reform – meaning many providers require a financial services licence.”
He added that “licensing ensures consumers receive the full suite of protections under the law and allows ASIC to act when poor practices lead to harm.”
The regulator also announced that it had made an “in-principle decision” to grant regulatory relief for distributors of certain stablecoins and wrapped tokens, as well as certain relief for custodians of digital assets that are financial products.
“We recognise that firms will need time to consider the updated guidance and apply for licences, so ASIC has granted a sector-wide no-action position until 30 June 2026,” said Kirkland. “ASIC also proposes to provide relief for stablecoin and wrapped token distributors to smooth the transition to proposed law reform.”
The regulator explained that its “no-action position” and proposed relief were informed by industry feedback from an earlier consultation. ASIC had asked for feedback on potential relief for wrapped tokens and stablecoins because of the transition to the government’s proposed digital asset platforms and payment regimes.
The regulator said it would also factor in its current no-action position when considering historical conduct, but would continue to act against “egregious conduct” if it sees potential for significant consumer harm or widespread systemic misconduct.
ASIC invited further feedback on the draft relief instruments until November 12, 2025.
Australia progressing digital asset rules
The regulator’s October 29 rules clarification is the result of an almost year-long consultation process, beginning last December when ASIC consulted on updates to a long-standing ‘information sheet‘ on regulatory obligations for those involved with digital assets products.
The so-called ‘INFO 225‘ was first published in September 2017, with updates made in 2018, 2019, and 2021. In December 2024, ASIC consulted on further updates that would clarify when certain digital assets are financial products, as well as on the application of the existing licensee obligations to digital asset businesses, potential relief for wrapped tokens and stablecoins, and the ‘no action’ position for the transition.
The regulator said of its consultation proposals, “together, these show ASIC’s ongoing commitment to supporting responsible innovation in the financial services sector.”
All of this comes in the context of broader legislative efforts underway by Prime Minister Anthony Albanese’s government. Specifically, the draft legislation for regulating digital asset platforms was revealed by the Treasury in September.
Up to now, Australian digital asset exchanges have only been required to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and implement anti-money laundering and Know Your Customer policies.
However, the proposed new framework would require exchanges and custodians to obtain an Australian Financial Services Licence (AFSL) from ASIC, in addition to strict compliance standards observed by other financial service providers, including a stipulation to act honestly and fairly.
Smaller exchanges that record less than $6.5 million in annual volume—or hold less than $3,300 in average customer deposits—would be exempted from the new requirements, while those that aren’t exempt could face fines ranging from $300 to millions of dollars if they fall foul of the rules.
“It is about legitimizing the good actors and shutting out the bad, giving businesses certainty and consumers confidence…working with industry, regulators and the broader community to make Australia a leader in the global digital asset ecosystem,” said Assistant Treasurer Daniel Mulino, when unveiling the legislation.
Watch: Regulation is on full throttle
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Source: https://coingeek.com/australia-top-finance-watchdog-updates-digital-asset-guidance/
