Key Insights
- ASIC has granted licensing relief for intermediaries distributing stablecoins issued by licensed entities, easing compliance costs until 2028.
- The exemption currently applies only to Catena Digital’s AUDM stablecoin, with potential expansion as more issuers gain licences.
SYDNEY, (MarketsXplora) – Australia’s securities regulator has introduced a class exemption that allows intermediaries to distribute stablecoins issued by licensed entities without holding their own financial services or market licences, marking a first step in easing compliance costs for the sector while broader reforms are in development.
The Australian Securities and Investments Commission (ASIC) said on Thursday the Corporations (Stablecoin Distribution Exemption) Instrument 2025/631 applies to intermediaries handling stablecoins classified as financial products under the Corporations Act, provided the issuer holds an Australian Financial Services (AFS) licence.
The exemption temporarily removes obligations for intermediaries—such as crypto exchanges, brokers and custodial platforms—to obtain separate AFS, market or clearing and settlement facility licences when distributing AFS-issued stablecoins. It will remain in place until June 1, 2028, unless repealed earlier.
“ASIC is committed to supporting responsible innovation in the rapidly evolving digital assets space, while ensuring important consumer protections are in place by having eligible stablecoins issued under an AFS licence,” the regulator said.
AUDM Named as First Eligible Stablecoin Under ASIC’s Exemption
At present, the relief applies only to Catena Digital Pty Ltd, issuer of the Australian dollar-backed AUDM stablecoin, which ASIC has listed as the initial “Named Stablecoin.” Officials indicated the scope could be extended as additional issuers secure AFS licences.
Covered services include providing general advice, market-making, dealing in—but not issuing—the stablecoin, and custodial services. For retail clients, intermediaries must also make the issuer’s Product Disclosure Statement available.
The move follows public feedback to a recent consultation in which industry stakeholders flagged burdensome compliance costs for intermediaries during a transitional period. ASIC said the measure is intended as a bridge until Australia implements a broader licensing regime for payment stablecoins.
The government’s March 2025 policy outline proposes a dual-track regime covering digital asset platforms (DAPs) and payment stablecoins. It also specifies that businesses will not require a financial markets licence simply to distribute certain stablecoins or wrapped tokens under the new settings.
Related: ASIC Says Stablecoins and Wrapped Tokens Are Financial Products
Global Push to Regulate Stablecoins Gains Momentum
Australia’s interim relief arrives amid a wave of international regulatory action on fiat-pegged tokens. The United States, under President Donald Trump, recently enacted its first federal oversight framework for stablecoins through the GENIUS Act. In Europe, the Markets in Crypto-Assets (MiCA) regulation now governs asset-referenced and e-money tokens.
Elsewhere, Hong Kong and China are advancing their own models, while the U.S. has authorised banks and financial institutions to issue fiat-backed or high-quality collateralised stablecoins. France’s Societe Generale is preparing to launch a USD-pegged stablecoin across Ethereum and Solana, and privacy-focused project Aleo has joined the Global Dollar Network to enhance settlement confidentiality.
Read also: ASIC Fines ANZ Bank $240 Million for Bond Trading Misconduct
Despite such progress, Australian crypto users still face frictions with the traditional banking sector. A recent Binance survey of 1,900 respondents found 58% wanted easier, unlimited deposit options into exchanges, while 22% reported switching banks to improve access.
By lowering barriers for intermediaries in the short term, regulators hope to balance consumer protection with innovation as the country prepares a permanent framework for stablecoins and digital assets.