The Australian Securities and Investments Commission (ASIC) published revised digital asset guidance on Wednesday, establishing that stablecoins, wrapped tokens, tokenized securities, and digital asset wallets require financial services licensing. Commissioner Alan Kirkland stated the classification ensures consumer protections under existing law and enables regulatory action when poor practices cause harm.
Implementation Timeline and Industry Response
Businesses have until June 30, 2026, to evaluate the guidance and obtain the necessary licenses under sector-wide no-action relief granted by ASIC. The regulator proposed additional relief for certain stablecoin and wrapped token distributors, along with custodians of digital asset financial products, responding to industry consultation feedback requesting clearer treatment of these asset categories.
Crypto lawyer John Bassilios of Hall & Wilcox explained that Bitcoin, gaming NFTs, and tokenized concert tickets likely fall outside financial product classification under the new framework. Exchanges operating exclusively with Bitcoin would not require licensing based on this guidance, he noted.
Scope of the New Regulations
The updated rules encompass yield-bearing stablecoins, tokenized real estate, tokenized bonds, and staking services featuring restrictions like minimum balances or lock-up periods. Steve Vallas, CEO of Blockchain APAC, characterized the guidance as setting demanding standards that require significant coordination across policy, law and industry for implementation.
ASIC's approach operationalizes policy ahead of law reform, bringing short-term certainty while exposing how much interpretation currently substitutes for legislation, Vallas observed. He identified structural bottlenecks, including limited local expertise, banking access, and insurance capacity, as likely implementation challenges that could transform compliance from a legal issue into a logistical problem.
Industry Anticipation and Lingering Concerns
Amy-Rose Goodey, CEO of the Digital Economy Council of Australia, said the industry had awaited this clarity extensively. The guidance provides visibility on ASIC's regulatory approach to digital asset businesses, information previously unavailable to the sector, she explained. Concerns persist regarding ASIC's capacity to process numerous license applications quickly enough to maintain business compliance.
The industry is currently operating in a transition stage with businesses restructuring and reviewing required licenses, according to Goodey. ASIC released a consultation paper in December 2024 seeking industry feedback on how existing laws should apply to digital assets after months of consultation.
Regulatory Developments and Legislative Proposals
September saw ASIC announce a class exemption allowing licensed intermediaries to distribute stablecoins without separate regulatory approvals. Australia's Treasury proposed draft legislation in March requiring crypto exchanges and service providers to hold financial services licenses, concluding consultation last Friday on extending finance sector laws to crypto providers.