ASIC's Crypto Framework Seeks Balance as Industry Demands Clarity

Australia's financial regulator has issued long-awaited guidance on crypto assets, classifying stablecoins and wrapped tokens as financial products under existing laws, while industry players have welcomed the move but called for clearer definitions, according to ASIC guidance. The Australian Securities and Investments Commission (ASIC) said in a statement that companies offering such products now require an Australian Financial Services License (AFSL), aligning with broader efforts to integrate crypto into the formal financial system, TradingView reported. The guidance, released alongside draft legislation proposing a licensing regime for digital-asset platforms, aims to bring exchanges and custodians under stricter oversight by late 2026.

The updated rules grant a sector-wide "no-action relief" until June 30, 2026, allowing businesses time to comply with licensing requirements, the TradingView piece noted. ASIC also signaled flexibility for experienced crypto professionals to qualify as responsible managers under AFSL standards and offered temporary relief for firms actively seeking authorization, as covered in the Yahoo analysis. However, the regulator stopped short of defining "true DeFi," leaving licensing decisions to depend on individual roles in decentralized arrangements, the Yahoo report added.

Industry stakeholders have generally supported the direction, with OKX Australia's CEO Kate Cooper noting the move reflects crypto's integration into mainstream finance, according to Coinpedia. Liam Hennessy, a partner at Thomson Geer, praised the approach for avoiding overly strict European-style rules or the U.S.'s fragmented framework, also reported by Coinpedia. Yet concerns persist over vague definitions in the draft laws. Caroline Bowler, former CEO of BTC Markets, highlighted critical gaps, stating, "Structure must come with clarity," a point Coinpedia documented. The consultation period for the proposed legislation closed October 24, with final rules expected by March 2026, Coinpedia said.

ASIC's guidance also addresses stablecoins and tokenized securities, which now fall under the Corporations Act's Chapter 5C, requiring robust custody, risk management, and disclosure practices, as noted in the Yahoo coverage. The regulator emphasized collaboration with agencies like AUSTRAC and APRA to avoid regulatory overlaps, the Yahoo analysis added. Meanwhile, penalties for noncompliance could reach A$16.5 million or 10% of annual turnover, underscoring the government's commitment to enforcement, Coinpedia reported.

The regulatory push comes as Australian crypto adoption outpaces the US, hitting 31% in 2025 and driven by trading activity in mobile wallets. Stablecoins alone facilitated $46 trillion in transactions in the past year, with Tether and USDC dominating 87% of the market, the Yahoo piece found. However, enforcement actions highlight ongoing challenges. ASIC recently barred a director from leaving as the regulator investigates the firm's collapse in 2019, which left A$58 million in unsecured debts.

The draft laws and guidance aim to position Australia as a global crypto hub, balancing innovation with consumer protection. As the sector evolves, clarity on DeFi, stablecoins, and enforcement mechanisms will remain critical to sustaining trust and growth.