Australia’s financial regulator has taken a significant step in formalizing the digital asset space, confirming it will oversee cryptocurrencies and related services with the same rigor as traditional financial products. In a major update, the Australian Securities and Investments Commission (ASIC) has clarified how existing financial laws apply to the sector, bringing clarity for businesses and enhanced protections for investors.
A New Chapter of Clarity and Compliance
ASIC has reissued its Information Sheet 225 (INFO 225), a move that provides the regulatory clarity the industry has been seeking. The updated guidance explicitly states that many widely traded digital assets, including stablecoins, wrapped tokens, and tokenized securities, are considered financial products under current law. This means providers of services for these assets will generally require an Australian Financial Services (AFS) licence.
Recognizing that firms need time to adapt, ASIC has instituted a sector-wide “no-action position”. This transitional relief means that while the rules are in effect, ASIC will not take regulatory action against businesses working in good faith to comply, giving them a runway until June 30, 2026, to secure the necessary licenses.
Practical Relief and Firm Requirements
A key aspect of this new framework is targeted relief for specific activities. ASIC has granted class exemptions for intermediaries distributing stablecoins that are issued by an AFS-licensed entity. This first-of-its-kind relief prevents a dual-licensing burden and is designed to support the commercial viability of distributing compliant stablecoins, with the initial exemption applying to the AUDM stablecoin issued by Catena Digital Pty Ltd.
For digital asset custodians, the rules are more stringent. ASIC is imposing a requirement for these service providers to hold at least A$10 million in net tangible assets. This capital requirement is intended to enhance safety and reduce the risk of loss for consumers due to operational failures, hacks, or insolvency, bringing standards for digital asset custodians closer in line with those for traditional custodians.
Building a Responsible Digital Future
This regulatory overhaul is not happening in isolation. ASIC’s updated guidance is aligned with and supports the Australian Government’s broader work on digital asset platform reforms. The regulator has emphasized that its approach aims to protect consumers while also supporting responsible innovation in the financial services sector.
By clarifying that skilled professionals with experience in cryptocurrency and blockchain can qualify as responsible managers for an AFS licence, ASIC is acknowledging the unique expertise required in this field and helping to build a bridge between innovative technology and established regulatory standards.
