The Australian Securities and Investments Commission (ASIC) granted class relief for intermediaries distributing stablecoin issued by licensed Australian Financial Services (AFS) providers, exempting them from separate licensing requirements until June 2028.
According to the press release, the first-of-its-kind relief allows distributors to operate without an Australian market, clearing and settlement facility, or additional AFS licenses when handling stablecoins from licensed issuers.
The relief requires intermediaries to provide Product Disclosure Statements to retail clients and takes effect once registered on the Federal Register of Legislation. The regulatory framework emerges from extensive consultation following December 2024 guidance updates that clarified some stablecoins qualify as financial products under current law.
ASIC’s instrument specifically names Catena Digital Pty Ltd as the initial qualified issuer for its AUDM stablecoin, with plans to extend relief to additional licensed stablecoin issuers.
ASIC positioned the temporary relief as bridging regulatory gaps until the government’s broader digital asset reforms commence, supporting responsible innovation while maintaining consumer protections through licensed issuer requirements.
Multiple submissions highlighted compliance costs associated with licensing requirements, with stablecoin issuers indicating distribution would not be commercially viable without intermediary relief.
Consultation Paper 381 revealed widespread concerns about compliance costs and regulatory burden for secondary distributors operating under current financial services laws. Several respondents suggested deferring stablecoin regulation until the government’s proposed payment services and digital asset platform reforms take effect.
The exemption responds directly to industry feedback, warning that stablecoin distribution faced significant barriers under existing licensing regimes.
The instrument exempts distributors from three key licensing requirements when operating financial markets, clearing and settlement facilities, or providing financial services solely because stablecoins qualify as financial products.
Services covered include general advice, dealing, market making, and custodial or depository services for named stablecoins.
ASIC consulted directly with stablecoin issuers and nominated distributors, who confirmed that distribution operations would lack commercial viability without licensing relief for intermediaries.
According to an April report, authorities shut down 95 companies linked to international “pig butchering” schemes after receiving nearly 1,500 victim claims totaling $35.8 million in reported losses. ASIC continues dismantling an average of 130 scam websites weekly, having disabled over 10,000 malicious platforms, including 7,200 fake investment sites and 1,500 phishing operations.
The stablecoin relief comes as ASIC is aggressively enforcing regulatory actions against non-compliant crypto operators across Australia.
