The Australian Securities and Investments Commission has clarified how existing financial laws apply to digital assets. The update aims to give investors more protection and provide firms with clearer rules ahead of future law reforms.
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The clarification follows earlier proposals for full licensing and stronger consumer protections for crypto firms in Australia.
Stablecoins, Tokens Classified as Financial Products
ASIC’s new guidance confirms that stablecoins, wrapped tokens, tokenised securities, and digital asset wallets are considered financial products under current law. This means that many providers offering these products will need to hold a financial services licence.
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ASIC Commissioner Alan Kirkland said that distributed ledger technology and tokenisation are changing global finance. He added that ASIC’s guidance gives firms the clarity they need to operate within existing laws.
He explained that licensing ensures consumers receive legal protections and enables ASIC to take action when poor practices cause harm. To help firms adjust, ASIC ASIC The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the The Australian Securities and Investments Commission (ASIC) is the prime regulator in Australia for corporate, markets, financial services, and consumer credit. It is empowered under the financial service laws to facilitate, regulate, and enforce Australian financial laws. The Australian Commission was set up and is administered under the Australian Securities and Investment Commission Act of 2001. ASIC was initially the Australian Securities Commission based on the 1989 ASC Act. Initially, the Read this Term has introduced a sector-wide no-action position that will last until 30 June 2026. During this period, the regulator will not take enforcement action against unlicensed providers making genuine efforts to comply.
Public Feedback Open on Draft Relief
ASIC also plans to provide temporary relief for distributors of stablecoins and wrapped tokens, and for custodians of digital assets that qualify as financial products. The regulator is seeking public feedback on these draft relief measures until 12 November 2025.
No-Action Position Considered for Past Behaviour
In addition, ASIC released a summary of industry feedback from Consultation Paper 381, which focused on digital asset financial products and services. The feedback helped shape the current guidance, including the examples and relief measures now proposed.
ASIC said it will consider the no-action position when assessing past behaviour but will continue to act against serious misconduct or practices that cause significant consumer harm.
