The Australian Securities and Investments Commission (ASIC) has updated its guidance on digital assets, officially recognizing stablecoins, wrapped tokens, tokenized securities, and digital wallets as financial products under existing law.
This move significantly expands the regulatory scope over the local crypto industry and brings clarity to companies operating at the intersection of blockchain and finance.
Licensing Now Mandatory for Providers
Under the new interpretation, issuers and service providers offering these assets will be required to obtain an Australian Financial Services (AFS) license. ASIC stated that this step is crucial to ensure investor protection and anti-fraud enforcement in the rapidly evolving digital asset ecosystem.
ASIC Commissioner Alan Kirkland emphasized that distributed ledger technology and tokenization are transforming the financial landscape, and businesses have long needed clear regulatory guidance.
“Licensing will give both investors and companies greater confidence that the system is fair, transparent, and accountable,” Kirkland said.
Transition Period Until June 2026
To allow firms time to adjust, ASIC has announced a “no-action” transition period until June 30, 2026. During this phase, crypto businesses can continue operations while preparing to meet new licensing and compliance requirements.
The regulator also proposed temporary relief measures for specific issuers of stablecoins, wrapped tokens, and custodians managing digital assets considered financial products.
ASIC is accepting public feedback on the draft documentation until November 12, 2025.
Broader Regulatory Push
Australia’s move follows growing global pressure for clearer oversight of digital assets, particularly around stablecoin issuance and tokenized financial instruments.
Earlier this year, the government also proposed restrictions on crypto ATMs, signaling a coordinated effort to align national regulation with global standards.
With ASIC’s latest update, Australia takes another major step toward a comprehensive crypto regulatory framework that merges innovation with consumer protection.
