Australia’s markets regulator is refining its approach to digital assets, expanding how financial laws apply to tokens, custody and stablecoins, as it prepares to introduce a new licensing regime.
The Australian Securities and Investments Commission (ASIC) this week detailed its expectations for the sector, saying many digital assets already meet the definition of financial products under the Corporations Act 2001.
The updated interpretation appears in ASIC’s proposed revision of Information Sheet 225, which broadens its scope from “crypto assets” to “digital assets” and introduces 13 practical examples explaining when tokens, staking programs and tokenized products require financial services licenses.
The regulator’s decision comes as the Treasury finalizes its draft bills on digital asset platforms and payment service providers, which will introduce formal licenses for exchanges, custodians and certain stablecoin issuers. ASIC’s latest guidance effectively sets the stage for these laws by highlighting that most crypto-related activities are already covered under the current framework.
Among the new examples, ASIC reports that fiat-backed stablecoins could be treated as non-cash payment facilities, while wrapped tokens can be considered derivatives – both subject to the Australian Financial Services (AFS) license.
The commission stressed that Australian law applies to offshore and decentralized structures traded or sold to local users, warning that global platforms cannot rely on geography to circumvent oversight.
ASIC also introduced new custody obligations, requiring firms that hold client assets to meet net tangible asset thresholds of up to A$10 million (US$6.5 million), unless their custody role is deemed incidental.
Although ASIC is offering a “no action” transition period for businesses applying for the appropriate licenses once the guidelines are finalized, it has made it clear that expectations for enforcement are growing.
The update builds on Australia’s ongoing efforts to integrate the crypto sector into its established financial services scope. As the Treasury’s legislative proposals are set to be introduced, ASIC’s position indicates that the country’s regulators are moving forward at the same time to formalize compliance for digital assets.
