ASIC's Approach to Crypto Aims for Equilibrium Amid Calls from Industry for Greater Transparency

Australia’s financial watchdog has released long-anticipated guidelines for crypto assets, designating stablecoins and wrapped tokens as financial products under current regulations. Industry representatives have generally welcomed the update but are urging for more precise definitions, according to

. In its announcement, the Australian Securities and Investments Commission (ASIC) stated that businesses offering these products must now obtain an Australian Financial Services License (AFSL), aligning with broader initiatives to formally incorporate crypto into the financial sector, . The new guidance, which was released alongside proposing a licensing framework for digital asset platforms, seeks to bring exchanges and custodians under tighter regulation by the end of 2026.

The revised regulations provide industry-wide “no-action relief” until June 30, 2026, giving companies time to adapt to the licensing rules, as highlighted by TradingView. ASIC also indicated it would allow experienced crypto professionals to serve as responsible managers under AFSL requirements and is offering temporary relief to firms actively pursuing authorization, according to Yahoo’s analysis. However, the regulator did not define “true DeFi,” leaving licensing decisions to depend on each party’s function within decentralized systems, Yahoo further reported.

Most industry participants have responded positively, with OKX Australia CEO Kate Cooper stating the move signals crypto’s growing role in mainstream finance, as reported by Coinpedia. Liam Hennessy, a partner at Thomson Geer, commended the approach for steering clear of both strict European-style rules and the fragmented U.S. model, also according to Coinpedia. Nonetheless, there are ongoing concerns about ambiguous definitions in the proposed legislation. Caroline Bowler, former CEO of BTC Markets, pointed out significant shortcomings, saying, “Structure must come with clarity,” a sentiment Coinpedia captured. The consultation period for the draft rules ended on October 24, and the final regulations are expected by March 2026, Coinpedia noted.

ASIC’s updated guidance also covers stablecoins and tokenized securities, which now fall under Chapter 5C of the Corporations Act, requiring strong custody, risk management, and disclosure standards, as Yahoo reported. The regulator stressed the importance of working with agencies such as AUSTRAC and APRA to prevent overlapping oversight, Yahoo added. Noncompliance could result in penalties of up to A$16.5 million or 10% of annual revenue, highlighting the government’s focus on enforcement, Coinpedia reported.

This regulatory initiative comes as

, reaching 31% in 2025, largely driven by trading through mobile wallets. In the past year, stablecoins enabled $46 trillion in transactions, with and accounting for 87% of the market, according to Yahoo. However, enforcement actions continue to reveal challenges. ASIC recently as it investigates the collapse of a company in 2019 that left A$58 million in unsecured liabilities.

The proposed regulations and guidance are intended to establish Australia as a leading center for crypto, aiming to balance innovation with consumer safeguards. As the industry develops, clear rules around DeFi, stablecoins, and enforcement will be essential for maintaining confidence and supporting growth.