Australia’s markets regulator is tightening its approach to digital assets, expanding how financial laws apply to tokens, escrow 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 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 expands its scope from “crypto-assets” to “digital assets” and introduces 13 practical examples explaining when tokens, stake programs and tokenized products require financial services licences.
The regulator’s move comes as the Treasury finalizes its bills on digital asset platforms and payment service providers, which will introduce formal licensing for exchanges, custodians and certain stablecoin issuers. ASIC’s latest guidance effectively prepares the ground for these laws by emphasizing that most crypto-related activities are already caught under the current framework.
Among the new examples, ASIC highlights that fiat-backed stablecoins can be treated as non-cash payment facilities, while wrapped tokens can qualify as derivatives – both subject to Australian Financial Services (AFS) licence.
The commission emphasized that Australian law applies to offshore and decentralized structures marketed or sold to local users, and warned that global platforms cannot rely on geography to circumvent oversight.
ASIC also outlined new custodian obligations requiring firms holding client assets to meet net tangible asset thresholds of up to A$10 million (US$6.5 million) unless their custodian role is deemed incidental.
While ASIC is offering a “no action” transition period for companies applying for the relevant licenses once the guidance is finalised, it made clear that expectations for enforcement are increasing.
The update builds on Australia’s ongoing efforts to bring the crypto sector within its established financial services. As the Treasury bill nears introduction, ASIC’s stance signals the country’s regulators are moving in lockstep to formalize digital asset compliance.
