Australia has taken a decisive step toward comprehensive digital asset regulation. The country’s financial watchdog, Australian Securities and Investments Commission (ASIC), now says stablecoins, wrapped tokens, tokenized securities, and digital wallets count as financial products. This means any company offering them must get an Australian Financial Services (AFS) license to keep operating legally.
In a statement released by ASIC on October 29, ASIC Commissioner Alan Kirkland stressed the need for crypto firms to follow the rules. “Many widely traded digital assets are financial products under current law—and will remain so under the Government’s proposed law reform—meaning many providers require a financial services license,” he said. Kirkland explained that having proper licenses helps protect consumers and allows ASIC to take action when bad practices happen.
Transitional relief and broader scope
Besides tightening oversight, ASIC introduced a sector-wide no-action relief until June 30, 2026. This grace period gives companies more time to review their crypto products and apply for the right licenses. ASIC also plans to offer temporary relief for stablecoin and wrapped-token providers, along with custodians, before the Treasury’s new rules take effect.
ASIC’s new guideline also includes more real-world examples and expands upon its December 2024 review. Exchange tokens, yield-earning assets, gaming NFTs, and staking services are among the 18 comprehensive instances that are now included. ASIC describes how it determines if a digital asset qualifies as an investment product, derivative, or payment service in each scenario.
However, ASIC made it clear that foreign and decentralized crypto platforms must follow Australian laws if they target local users. In short, global platforms can’t avoid Australian rules just because they operate overseas.
Strengthening custody and fund management rules
The new rules also render it more stringent the way companies deal with customer assets. Cryptocurrency companies that have client funds have to maintain at least $10 million in net assets, except if their operations are extremely minimal.
ASIC also put in place more transparent rules for fund managers and exchange-traded product (ETP) issuers, looking to better risk management and disclosure under existing corporate laws.
A spokesperson for Swyftx said, “The government has said it wants Australia to be a leader in digital assets, but it’s all about balancing consumer protections and innovation.”
Furthermore, ASIC also said it’s working closely with other key agencies like AUSTRAC, APRA, and the Reserve Bank to keep rules consistent across the board. This move ties in with the Labor government’s upcoming Digital Asset Platforms and Payment Service Providers bills, which are expected to introduce official licensing for crypto exchanges and custodians later this year.
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