Nikolas Sargeant
Australia's financial regulator has released an updated version of its guidance clarifying how the country's existing financial services laws apply to digital assets. The Australian Securities and Investments Commission (ASIC) said in a Wednesday statement that it now considers products such as stablecoins, wrapped tokens, tokenized securities and digital asset wallets as financial products. Companies therefore need a local financial services license to offer such products.
The latest update replaces earlier "crypto-asset" terminology with the broader term "digital assets," intended to capture virtual, tokenized, and coin-based products without exclusion. The latest version of Info Sheet 225 increases the number of examples from 13 to 18, providing practical illustrations for activities including gaming NFTs, wrapped tokens, and staking-as-a-service models. The regulator granted a sector-wide no-action position through June 30, 2026, allowing firms time to apply for licenses.
ASIC also reinforced that Australian law applies to offshore and decentralized structures if they are marketed or sold to local users, warning that global platforms cannot rely on geography to avoid domestic oversight. The regulator further detailed new custodial obligations, requiring firms holding client assets to meet net tangible asset thresholds of up to $10 million (US$6.5 million), unless their custody role is deemed incidental.
ASIC's updated guidance comes after months of consultation with the industry. The guidance arrives as the Labor government advances its own digital-asset-platform legislation, expected to introduce formal licensing for exchanges, custody platforms, and certain stablecoin issuers. ASIC recently provided exemptions to stablecoin distributors, easing their licensing requirements until 2028. While industry voices have welcomed the clarity, some have expressed concerns about potential bottlenecks in the licensing process as companies rush to comply with the new requirements.
Recent Cryptocurrency Developments in Australia
Australia's cryptocurrency landscape has seen significant regulatory and technological developments in recent months. The financial intelligence agency AUSTRAC has implemented comprehensive regulatory measures targeting cryptocurrency ATM operations across the nation, responding to escalating fraud cases and compliance violations. The new framework establishes A$5,000 ($3,233) maximum limits for both cash deposits and withdrawals, alongside enhanced customer verification protocols and mandatory anti-fraud messaging. Australia's crypto ATM landscape has experienced unprecedented expansion, with current infrastructure totaling approximately 1,824 machines nationwide, up from merely 23 operational units in 2019.
On the innovation front, Australia's Reserve Bank has launched the second phase of its ambitious digital currency exploration through Project Acacia, bringing together major financial institutions to test how central bank digital currencies and tokenized assets can transform wholesale markets. The six-month trial involves testing stablecoins, bank deposit tokens, and a pilot wholesale central bank digital currency through 24 distinct use cases, with 19 featuring real money transactions. Three of Australia's four major banks are participating, including Commonwealth Bank, ANZ Bank, and Westpac Banking Corporation, with results expected in the first quarter of 2026.
