Australian Regulator Signals Broader Digital Asset Oversight Ahead of New Licensing Regime

Australia’s markets regulator is sharpening 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 expectations for the industry, saying that many digital assets already meet the definition of financial products under the Corporations Act 2001.

The updated interpretation appears in ASIC’s proposed revision to 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 move comes as the Treasury finalizes its Digital Asset Platforms and Payment Service Providers bills, which will introduce formal licensing for exchanges, custodians and certain stablecoin issuers. ASIC’s latest guidance effectively prepares the ground for those laws by emphasizing that most crypto-related activity is already captured under the current framework.

Among the new examples, ASIC flags that fiat-backed stablecoins could be treated as non-cash payment facilities, while wrapped tokens may qualify as derivatives — both subject to Australian Financial Services (AFS) licensing.

The commission reinforced that Australian law applies to offshore and decentralized structures marketed or sold to local users, warning that global platforms cannot rely on geography to sidestep oversight.

ASIC also outlined new custodial obligations, requiring firms that hold client assets to meet net tangible asset thresholds of up to 10 million Australian dollars (US$6.5 million), unless their custody role is deemed incidental.

While ASIC is offering a transitional "no-action" period for companies applying for the appropriate licenses once the guidance is finalized, it made clear that enforcement expectations are rising.

The update builds on Australia’s ongoing efforts to bring the crypto sector within its established financial-services perimeter. As the Treasury’s legislative proposals near introduction, ASIC’s stance signals that the country’s regulators are moving in lockstep to formalize digital-asset compliance.