Australia’s ASIC Cuts Compliance Burden for Stablecoin Intermediaries
In a move to facilitate growth and innovation in digital assets and payments, the Australian Securities and Investments Commission (ASIC) has granted a unique exemption that enables stablecoin intermediaries to distribute licensed stable coins without holding a separate financial services license. This exemption, referred to as “ERSE-ISS-SIND,” is an important step forward for the country’s crypto industry.
The exemption applies to stable coins from companies that have acquired an Australian financial service license. Currently, only Catena Digital, an Australian stablecoin issuer, has been granted an AFS license, making its Australian dollar-pegged stable coin, AUDM, the first to qualify under the new exemption. This means that crypto exchanges and other intermediaries can save compliance costs and offer access to selected regulated stable coins without needing additional licensing.
Key Points
- ASIC has granted an exemption allowing stablecoin intermediaries to distribute licensed stable coins without separate licenses.
- Catena Digital’s AUDM is the first stable coin to qualify under the exemption.
- The exemption is a response to a consultation paper issued by ASIC in December 2024.
According to ASIC, the exemption is an “important step to facilitate growth and innovation in digital assets and payments” while ensuring consumer protection. The regulatory authority is committed to supporting responsible innovation in the rapidly developing area of digital assets. ASIC Commissioner Alan Kirkland stated that “many digital assets and related products are financial products under the applicable law” and that stakeholders have asked for more clarity, prompting the update of guidelines.
ASIC Sets to Formalize Crypto Rules
The exemption is a direct response to concerns expressed during ASIC’s consultation for crypto regulation, which was presented in consultation paper 381. The paper proposed updates to the guidelines for digital assets, Info 225, to better capture digital assets and provide practical examples of how existing financial product definitions could apply to stable coins, packaged tokens, and other digital assets.
ASIC is currently finalizing the updates and plans to publish the revised Info 225, along with key topics and public submissions from the consultation, in the coming weeks. The regulatory authority is working closely with the country’s finance department to develop a stable coin framework. This development is expected to provide further clarity and guidance for the industry.
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