The Australian Securities and Investments Commission (ASIC) has issued new guidance that redefines key segments of the digital asset industry, including stablecoins, wrapped tokens, tokenized securities, and digital asset wallets, as financial products under Australian law.
The move represents one of the country’s most sweeping crypto regulatory updates to date and will significantly impact how companies operate in the sector.
A Landmark Shift in Australian Crypto Regulation
Under the new guidance, any company offering or facilitating these products must now hold an Australian Financial Services (AFS) license. This effectively brings a large portion of Australia’s crypto ecosystem under the same regulatory umbrella as traditional finance. However, Bitcoin itself remains outside this scope, ASIC noted it is “unlikely” to be classified as a financial product.
Transitional Relief and Licensing Window
To ease the transition, ASIC is offering “no-action” relief until June 30, 2026, giving firms time to review their operations, apply for the required licenses, and align with compliance obligations. Additional relief has been proposed for:
Stablecoin and wrapped token distributors, to prevent disruption of ongoing services.
Custodians holding digital asset financial products, allowing time to upgrade compliance systems.
Regulatory Clarity After Industry Consultation
The new framework follows months of public and industry consultation. ASIC stated that the relief measures directly reflect feedback from exchanges, wallet providers, and institutional players, who sought clarity on how stablecoins and tokenized assets fit within the existing financial laws.
Alignment with Broader Crypto Reform
The guidance aligns with the Australian government’s broader push toward comprehensive digital asset regulation, including upcoming legislation that will introduce crypto exchange licensing and custody rules.
Boosting Consumer Confidence
By classifying these assets as financial products, ASIC aims to enhance investor protection through stricter oversight, transparency, and enforcement powers. This ensures Australian consumers receive the same legal safeguards that apply to traditional investment products, from disclosure standards to dispute resolution mechanisms.
The update marks a decisive step toward integrating crypto into Australia’s regulated financial system, a move likely to reshape the country’s digital asset landscape ahead of the global race for clearer crypto rules.