Key Insights
- ASIC now classifies stablecoins, wrapped tokens, tokenised securities and digital asset wallets as financial products, requiring licensing.
- A sector-wide no-action period runs until June 30, 2026 to ease transition.
- Industry welcomes clarity but warns capacity and implementation bottlenecks could slow compliance.
SYDNEY, (MarketsXplora) — Australia’s financial regulator has unveiled a sweeping update to its digital asset guidance, marking the clearest signal yet that the country’s existing financial services laws now firmly encompass a wide range of crypto-related products.
The Australian Securities and Investments Commission (ASIC) said on Wednesday that it now considers stablecoins, wrapped tokens, tokenised securities, and digital asset wallets to be financial products under current law. As a result, firms offering such products will need to obtain a local financial services licence — a move ASIC says is critical to protecting consumers and maintaining trust in emerging markets.
“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,” said ASIC Commissioner Alan Kirkland. “Licensing ensures consumers receive the full suite of protections under the law and allows ASIC to act when poor practices lead to harm.”
Regulatory Relief to Smooth Transition
To ease the shift, ASIC has announced a sector-wide “no-action” position until June 30, 2026, effectively giving businesses two years to assess their obligations and begin the licensing process. During this period, the regulator will refrain from enforcement against unlicensed providers who are making genuine efforts to comply.
ASIC also plans targeted relief for distributors of stablecoins and wrapped tokens, as well as custodians handling digital asset financial products. Public consultation on these proposed measures will run until November 12, 2025.
Related: Australia Grants Licensing Relief for Stablecoin Intermediaries
The regulator’s updated Info Sheet 225 follows months of industry consultation. A December 2024 discussion paper sought feedback on how existing financial laws should apply to crypto assets, while a summary of responses published Wednesday shows that most industry participants had requested clearer definitions — particularly for stablecoins and wrapped tokens.
ASIC confirmed that feedback had directly shaped the examples and exemptions in its new guidance. The regulator also noted that the no-action position could be considered when evaluating past behaviour, though serious misconduct and consumer harm would still attract enforcement.
Industry Welcomes Clarity but Warns of Bottlenecks
The update has drawn mixed reactions from Australia’s blockchain sector — praised for its clarity but criticised for its ambitious implementation timeline.
John Bassilios, a crypto lawyer and partner at Hall & Wilcox, said the move clearly separates traditional cryptocurrencies from regulated digital products. “If you’re an exchange and you only deal in Bitcoin, then you don’t need to apply for a licence based on that guidance,” he told Cointelegraph.
However, he noted that yield-bearing stablecoins, tokenised real estate, tokenised bonds, and staking-as-a-service offerings could all fall under the “financial product” category, depending on how they operate.
Steve Vallas, CEO of consulting firm Blockchain APAC, said ASIC’s decision effectively pushes policy ahead of legislation. “That approach brings certainty in the short term but also exposes just how much interpretation is now doing the work of legislation,” he said. He warned that “structural bottlenecks” — including limited local expertise, banking access, and insurance capacity — could make compliance more of a logistical challenge than a legal one.
Amy-Rose Goodey, CEO of the Digital Economy Council of Australia, called the update long overdue. “It gives us visibility on ASIC’s position and how they’re going to treat businesses within the digital asset sector,” she said. But she also raised concerns about ASIC’s capacity to process a potentially large wave of licence applications in a timely fashion.
“The industry is in a transition stage,” Goodey added, noting that many firms are now restructuring and reviewing the specific licences they must hold.
Part of a Wider Regulatory Push
The move builds on a broader effort by Australian authorities to tighten crypto oversight. In September, ASIC introduced a class exemption allowing licensed intermediaries to distribute stablecoins without seeking separate approvals. Last month, the Treasury followed with draft legislation that would require crypto exchanges and certain service providers to hold financial services licences.
Kirkland said the latest update reflects ASIC’s ongoing engagement with industry and underscores the regulator’s view that digital assets can coexist with Australia’s existing legal framework — provided the same standards apply.
“Distributed ledger technology and tokenisation are changing global finance,” he said. “This guidance gives firms the clarity they need to innovate safely within the law.”