The Australian Securities and Investments Commission (ASIC) has officially updated its guidance on digital asset regulation, marking a major step toward defining how cryptocurrencies and tokenized assets fit within the nation’s financial framework. In a move that could reshape the country’s digital economy, the regulator has now recognized stablecoins, wrapped tokens, tokenized securities, and crypto wallets as financial products under existing law.
According to ASIC, this clarification ensures that companies dealing with these assets will now be required to obtain a financial services license, bringing them under the same compliance standards as traditional financial institutions. The regulator explained that this update reflects the rapid transformation of Australia’s financial landscape, where blockchain-based products are increasingly merging with conventional finance.
ASIC Commissioner Alan Kirkland emphasized that distributed ledger technology (DLT) and tokenization are fundamentally changing how financial systems operate. “The industry has been waiting for clear regulatory direction,” he noted, explaining that licensing requirements will strengthen investor protection and reduce the risks of fraud and manipulation in the market.
To ease the transition, ASIC introduced a “no-action period” until June 30, 2026, giving companies sufficient time to align with the new rules. This transitional phase will allow issuers, custodians, and crypto service providers to adapt their operations, ensure compliance, and submit applications for licensing without facing immediate enforcement actions.
In addition, ASIC has proposed certain regulatory exemptions for issuers of specific stablecoins and wrapped tokens, as well as for custodians handling digital assets that qualify as financial products. These exemptions aim to strike a balance between regulatory control and market innovation, ensuring that startups and established firms can continue developing blockchain-based financial tools responsibly.
The commission is also inviting public feedback on the draft guidance until November 12, 2025, allowing industry participants and stakeholders to shape the final regulatory structure. This open consultation process demonstrates ASIC’s intent to maintain transparency and collaboration with the crypto sector while reinforcing the country’s financial stability.
This decision follows recent Australian debates over limiting access to crypto ATMs, underscoring the government’s growing focus on consumer protection and systemic risk management in the digital finance sector.
In conclusion, ASIC’s move to classify stablecoins and wrapped tokens as financial products marks a pivotal shift in Australia’s crypto policy. By setting clear boundaries and requiring proper licensing, the regulator aims to legitimize digital assets within a secure, compliant framework, paving the way for a more mature and transparent blockchain economy.
