- Australia’s financial watchdog, ASIC, updated its guidance, signaling that much of the digital asset sector already falls under the Corporations Act 2001.
- ASIC reframed its guidance from “crypto assets” to “digital assets” and added 13 scenarios detailing when tokens and staking programs are considered financial products.
- To make a smooth transition to new laws, ASIC has granted a sector-wide no-action position until June 30, 2026, for firms actively seeking an appropriate license.
Australia’s financial watchdog, ASIC, has updated its reading of how current rules apply to digital assets, signalling that much of the sector already falls within the Corporations Act 2001 even before new statutes arrive.
In draft updates to Information Sheet 225, ASIC reframes guidance from “crypto assets” to “digital assets” and adds 13 detailed scenarios. The examples set out when tokens, staking programs, and tokenised products are indeed financial products that require an Australian Financial Services license.
The idea, overall, is to give businesses certainty and smooth the transition ahead of the Treasury’s pending Digital Asset Platforms and Payment Service Providers bills, which will introduce formal licensing for exchanges, custodians, and some stablecoin issuers. ASIC Commissioner, Alan Kirkland, said:
We recognise that firms will need time to consider the updated guidance and apply for licences, so ASIC has granted a sector-wide no-action position until 30 June 2026. ASIC also proposes to provide relief for stablecoin and wrapped token distributors to smooth the transition to proposed law reform.
ASIC Commissioner, Alan Kirkland.Related: Citi and Coinbase Join Forces to Power 24/7 Digital Asset Payments for Institutions
The updated draft comes after many voices in the crypto sector welcomed the new rules, yet requested more clarity and sharper definitions. For instance, Swyftx’s CEO, Jason Titman, asked the Treasury to simplify the draft and cap open-ended powers.
What to Expect for Stablecoins and Custody
ASIC’s interpretation flags that fiat-backed stablecoins can be treated as non-cash payment facilities, and that wrapped tokens may amount to derivatives. It also states that Australian rules apply to offshore and decentralised offerings that target local users, removing geography as a shield from enforcement.
Custody is a focal point, and firms holding client assets would be expected to meet net tangible asset requirements of up to AU$10 million, unless the custody function is genuinely incidental.
A transitional no-action stance would apply to entities actively seeking the appropriate license once the guidance is finalised, but the regulator made it clear that compliance expectations are rising now.
Related: XRP Dispute Prompts Indian Court to Order WazirX Bank Guarantee After US$235M Hack.
Credit: Source link
