Australia now classifies stablecoins and wrapped tokens as financial products under updated ASIC guidelines, requiring provider licenses.
The Australian Securities and Investments Commission (ASIC) has released updated guidance confirming that stablecoins, wrapped tokens and similar digital assets are now classified as financial products. The changes apply under current financial laws, meaning providers must obtain appropriate licenses to offer such services in the country.
ASIC expands definition of financial products to cover major digital assets
ASIC announced that stablecoins, wrapped tokens, tokenized securities, and digital asset wallets are considered financial products under current law. This classification requires businesses offering these services to obtain a local financial services license. The update follows months of consultation with industry stakeholders.
ASIC Commissioner Alan Kirkland said many popular digital assets fall within the definition of financial products and will remain so under the proposed reforms.
“Licensing ensures consumers receive the full set of protections under the law,” it said in a statement.
The regulator added that these changes aim to improve market surveillance and reduce harm to users.
These new guidelines build on previous regulatory efforts, including a September exemption that allowed certain licensed intermediaries to distribute stablecoins without the need for separate regulatory approval. The latest guidance more clearly sets out how businesses must comply with Australian financial laws when dealing with crypto assets.
Temporary relief provided as industry adapts to regulatory changes
ASIC is allowing an industry-wide no-action period until June 30, 2026. This gives businesses time to understand the new requirements and apply for the necessary licenses. This relief helps avoid disruption as the market adopts the updated framework.
The regulator also targeted relief proposed for distributors of certain stablecoins and wrapped tokens, as well as for custodians of digital asset financial products.
ASIC said these measures directly respond to comments received as part of its December 2024 consultation document. During this period, many companies have sought to clarify regulations surrounding stablecoins and wrapped tokens.
Companies offering these digital assets must now begin internal assessments to determine whether their products fall under the updated definition. Failure to comply with the reprieve period may result in enforcement action as ASIC will have full powers to intervene in unlicensed activities involving financial products.
Broader efforts to regulate crypto services in Australia
The move is part of a broader regulatory effort in Australia to further structure the digital assets sector. Last month, the Treasury released draft legislation that would require crypto exchanges and other service providers to hold a financial services license.
ASIC updated tips complements these legislative efforts and aims to bring more consistency to the way digital assets are treated in financial law. It also allows regulators to take action against poor industry practices while ensuring that consumer protection remains a priority.
The evolution of Australian crypto regulations reflects a growing interest in aligning with global standards. As crypto products become more integrated into financial systems, regulators are working to apply existing laws in a way that accommodates new technologies.
Businesses now face a clearer framework for operating digital asset services in the Australian market.
