Stablecoins Now Require a License in Australia
The Australian Securities and Investments Commission (ASIC) has released updated guidelines that fundamentally change how the country regulates digital assets. Stablecoins, so-called wrapped tokens, tokenized securities, and digital wallets are now considered financial products—and therefore subject to the same rules as traditional financial services.
ASIC: Digital assets fall under existing laws
According to ASIC’s Wednesday statement, many widely traded digital assets already fall under existing financial services laws. These products are regulated even before the upcoming legislative reform. “Many commonly traded digital assets are financial products under current law—and that will remain so after the planned reform,” said ASIC Commissioner Alan Kirkland. “Licensing ensures that consumers receive full legal protection and that ASIC can intervene when misconduct occurs.”
Transition period until mid-2026
To give firms time to adapt, ASIC will offer a no-action relief period until June 30, 2026. This means that regulators will temporarily refrain from legal action against entities that have not yet obtained a license, provided they are actively working toward compliance.
The measures also include proposed exemptions for certain stablecoin issuers, wrapped token providers, and digital asset custodians, in response to industry feedback seeking greater clarity on how existing laws apply to these products.
Outcome of long-term consultation
The updated guidance follows months of market consultation. In December 2024, ASIC released a discussion paper seeking input on how existing laws should apply to digital assets. Australia continues to build a clear regulatory framework for cryptocurrencies.
What to expect: licenses and new obligations
This move builds on previous ASIC initiatives. In September, the regulator announced an exemption allowing licensed brokers to offer stablecoins without additional regulatory approvals. Last month, the Australian Treasury introduced a draft law requiring financial licenses for crypto exchanges and digital asset service providers.
A new standard of protection for investors
The updated framework aims to enhance consumer protection, increase investor confidence, and strengthen trust in the crypto sector. Australia becomes one of the first countries to explicitly define that stablecoins and other tokenized assets fall under financial legislation and are subject to the same requirements as traditional financial products.
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