Australia Expands Crypto Regulations to Include Stablecoins and Tokenized Assets
Australia is strengthening its regulatory grip on the crypto industry, with the Australian Securities and Investments Commission (ASIC) updating its guidance to apply financial laws to a broader range of digital assets, including stablecoins, staking services, wrapped tokens, and tokenized securities. This move aims to provide clearer expectations and standards for platforms that store or manage digital assets, ensuring consumer protection and regulatory oversight.
Key Updates to Regulatory Framework
The revised document sets clearer expectations and standards for platforms that store or manage digital assets, confirming that Australian financial law applies to decentralized and offshore companies providing services to users in Australia. This move effectively closes loopholes exploited by global platforms, ensuring that many commonly traded digital assets are already financial products under current law and will remain so following the government’s upcoming legislation on digital asset platforms and payments.
ASIC Commissioner Alan Kirkland highlighted the importance of this move in maintaining regulatory oversight, stating: “Distributed ledger technology and tokenization are transforming global finance. ASIC’s guidance provides the clarity businesses have been demanding to confidently innovate in Australia.” The Regulatory Commission confirmed that many providers will need to obtain an Australian Financial Services License (AFSL) to operate legally, ensuring consumer protection is maintained and enabling enforcement action if necessary.
Transition Period and Proposed Relief
ASIC recognizes that service providers will need time to adapt to the updated rules and has granted a grace period until June 30, 2026. During this transition, the regulator is proposing targeted relief for traders of stablecoins and wrapped tokens, as well as custodians that manage digital assets that are considered financial products. Public feedback on the draft support tools is open until November 12, 2025, as ASIC works with the Treasury on a broader review of the country’s digital assets regulatory framework.
The latest expansion represents a step toward creating clearer regulatory guidance for crypto innovation, with the aim of providing emerging companies with stronger consumer protection and operational security. This move follows the country’s broader push toward comprehensive crypto supervision, which recently included proposals to regulate crypto ATMs and a bill establishing a licensing framework for digital asset providers. For more information, visit https://crypto.news/australia-extends-crypto-regulations-to-stablecoins-and-tokenized-assets/
