Australia Cleas Path for Stablecoins: Here’s What It Means for Crypto Distribution

TLDR:

• ASIC grants class relief for intermediaries handling licensed stablecoins, reducing the need for separate AFS licences.
• Exemption covers distribution, market, and clearing licences but still requires issuers to hold an AFS licence.
• Guidance updates to INFO 225 will add examples for stablecoins, meme coins, and wrapped tokens under financial laws.
• ASIC says it will consider extending relief as more stablecoin issuers receive Australian Financial Services licences.
  

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Australia has taken a major step toward structured stablecoin regulation, giving crypto firms room to grow. Regulators say the move will boost innovation while keeping consumer protections intact. 

The relief removes extra licensing barriers for distributors of licensed stablecoins. It could lead to wider access to digital money products. Industry players now wait for the next updates on crypto rules.

Stablecoins Distribution Gets Regulatory Relief

The ASIC announced class relief for intermediaries distributing a stablecoin from an Australian Financial Services (AFS) licensed issuer. The regulator said the relief removes the need for separate AFS, market, or clearing licences.

ASIC clarified that the relief applies only when the stablecoin issuer already holds an AFS licence. It also requires intermediaries to share the product disclosure statement with clients whenever the issuer provides one. 

The move is designed to support responsible growth of digital assets while keeping safeguards in place.

ASIC said it will look at extending this relief to more intermediaries as additional stablecoin issuers secure AFS licences. This approach aims to streamline market access without weakening regulatory oversight. 

It follows earlier calls from the industry for clearer rules on what counts as a financial product under current law.

Updates to INFO 225 and Next Steps

ASIC’s December 2024 consultation paper, CP 381, sought feedback on how crypto products should be treated under financial law. It included stablecoins, exchange tokens, commodity-linked tokens, and wrapped assets. 

The regulator said responses shaped its updated guidance, INFO 225, which will be published in the coming weeks.

The updated guidance will offer practical examples of how crypto assets fit under current definitions. This will help issuers, exchanges, and intermediaries understand licensing requirements before offering products to the public.

ASIC also pointed to its work with the Treasury on the government’s digital assets reform plan, including a stablecoin framework consulted on in 2023. It said the latest relief aligns with the broader effort to modernize payment systems.

Earlier this year, ASIC supported Project Acacia, allowing live tests of tokenized asset transactions and digital money. That pilot gave participants a way to explore on-chain settlement in a controlled setting. 

The latest move builds on that momentum by reducing red tape for stablecoin distributors.

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