Market News

Regulator Advances Digital Asset Oversight with New Licensing Framework

Australia’s markets regulator, the Australian Securities and Investments Commission (ASIC), has announced a significant expansion in its oversight of digital assets.

This shift comes as ASIC prepares to introduce a new licensing regime for various digital token activities, custody, and stablecoin operations.

In its latest guidance, ASIC clarified that many digital assets fall under the definition of financial products according to the Corporations Act 2001.

The updated Information Sheet 225 broadens the category from “crypto assets” to “digital assets,” providing 13 examples of when financial services licenses are required.

Notably, ASIC indicated that fiat-backed stablecoins may be classified as non-cash payment facilities, while wrapped tokens could be considered derivatives.

The regulator also stressed that Australian laws apply to offshore platforms, ensuring that global entities cannot evade regulatory oversight.

New custodial obligations demand that firms holding client assets maintain net tangible assets up to 10 million Australian dollars, barring incidental custody activities.

While ASIC is allowing a transitional "no-action" period for companies to apply for necessary licenses, enforcement expectations have been underscored.

These developments align with ongoing efforts in Australia to formalize compliance within the rapidly evolving digital asset sector.

As the Treasury's legislative proposals approach introduction, ASIC’s proactive stance indicates a concerted effort by regulators to tighten controls over digital assets.