Australia’s markets regulator is sharpening its approach to digital assets, expanding how financial laws apply to tokens, custody and stablecoins as it prepares to launch a new licensing regime.
The Australian Securities and Investments Commission (ASIC) this week detailed expectations for the industry, saying many digital assets already meet the definition of financial products under the Corporations Act 2001.
The updated interpretation appears in ASIC’s proposed amendment to Information Paper 225, which expands its scope from “crypto assets” to “digital assets” and presents 13 practical examples that illustrate why tokens, staking programs and tokenized products require a financial services license.
The regulator’s move comes as the Treasury is finalizing its digital asset platform and payment service provider bills, which would introduce formal licensing for exchanges, custodians and some stablecoin issuers. ASIC’s latest guidance effectively lays the groundwork for those laws by highlighting that most crypto-related activity is already caught under the existing framework.
In the new examples, ASIC says fiat-backed stablecoins can be treated as non-cash payment facilities, while wrapped tokens can qualify as derivatives – both subject to Australian Financial Services (AFS) licensing.
The Commission stressed that Australian law applies to offshore and decentralized structures that are marketed or sold to local users, warning that global platforms cannot rely on geography to avoid oversight.
ASIC has also outlined new custody obligations, requiring firms holding client assets to meet a net tangible asset threshold of up to 10 million Australian dollars (US$6.5 million), unless their custody role is considered contingent.
While ASIC is offering a transitional “no-action” period for companies applying for appropriate licenses after finalizing the guidance, it has made clear that enforcement expectations are increasing.
The update builds on Australia’s ongoing efforts to bring the crypto sector within its established financial-services perimeter. As the Treasury’s legislative proposals move closer to introduction, ASIC’s stance signals that the country’s regulator is taking steps to formalize digital-asset compliance.