Nikolas Sargeant
Australia's financial watchdog has taken a significant step toward streamlining the country's digital asset landscape by introducing licensing exemptions for stablecoin distributors. The Australian Securities and Investments Commission (ASIC) announced that intermediaries distributing stablecoins issued by licensed entities will no longer need to obtain their own Australian Financial Services (AFS) licenses, market licenses, or clearing and settlement facility licenses under the new ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631.
The exemption represents ASIC's commitment to fostering responsible innovation in the rapidly evolving digital assets sector while ensuring consumer protections remain intact. The regulator emphasized that the relief only applies to stablecoins classified as financial products under the current Corporations Act and issued by eligible AFS-licensed entities. Currently, the exemption applies specifically to Catena Digital Pty, which issues the AUDM stablecoin, though ASIC indicated it may expand coverage as more stablecoin issuers obtain proper licensing.
This regulatory relief covers various financial services related to secondary stablecoin distribution, including providing general advice, market-making activities, dealing in stablecoins, and custodial services. The measure directly addresses industry concerns about burdensome compliance costs that were highlighted during ASIC's recent consultation process, particularly affecting intermediaries during the current transitional regulatory period.
The exemption serves as a temporary bridge until broader regulatory reforms, including a proposed comprehensive licensing framework for payment stablecoins, are fully implemented. Set to expire on June 1, 2028, unless repealed earlier, this initiative comes amid ongoing challenges for Australian crypto users who continue facing banking restrictions when depositing funds into exchanges, despite significant regulatory progress in recent years including anti-money laundering rules and the launch of spot Bitcoin and Ethereum ETFs in 2024.
Meanwhile, the Australian stablecoin ecosystem continues to expand with new technological developments. The Australian Digital Dollar (AUDD) stablecoin recently launched on the Hedera network, leveraging the platform's enterprise-grade performance capabilities including transaction finality in seconds, predictable fees of $0.001 per transfer, and a carbon-negative environmental footprint. This expansion allows AUDD to be held, sent, and received through Hedera-enabled digital wallets, providing users with seamless, real-time access to Australian dollar stablecoin payments and demonstrating the growing infrastructure supporting Australia's digital currency ecosystem.
