The Australian Securities and Investments Commission has
clarified how existing financial laws apply to digital assets. The update aims
to give investors more protection and provide firms with clearer rules ahead of
future law reforms.
Digital
assets meet tradfi in London at the fmls25
The clarification follows earlier
proposals for full licensing and stronger consumer protections for crypto
firms in Australia.
Stablecoins, Tokens Classified as Financial Products
ASIC’s new guidance confirms that stablecoins, wrapped
tokens, tokenised securities, and digital asset wallets are considered
financial products under current law. This means that many providers offering
these products will need to hold a financial services licence.
ASIC Commissioner Alan Kirkland said that distributed ledger
technology and tokenisation are changing global finance. He added that ASIC’s
guidance gives firms the clarity they need to operate within existing laws.
He explained that licensing ensures consumers receive legal
protections and enables ASIC to take action when poor practices cause harm. To
help firms adjust, ASIC has introduced a sector-wide no-action position that
will last until 30 June 2026. During this period, the regulator will not take
enforcement action against unlicensed providers making genuine efforts to
comply.
Public Feedback Open on Draft Relief
ASIC also plans to provide temporary relief for distributors
of stablecoins and wrapped tokens, and for custodians of digital assets that
qualify as financial products. The regulator is seeking public feedback on
these draft relief measures until 12 November 2025.
No-Action Position Considered for Past Behaviour
In addition, ASIC released a summary of industry feedback
from Consultation Paper 381, which focused on digital asset financial products
and services. The feedback helped shape the current guidance, including the
examples and relief measures now proposed.
ASIC said it will consider the no-action position when
assessing past behaviour but will continue to act against serious misconduct or
practices that cause significant consumer harm.
This article was written by Tareq Sikder at www.financemagnates.com.
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