The Australian Securities and Investments Commission (ASIC) has updated its approach to digital assets, confirming how current financial laws apply, while introducing temporary measures to ease compliance ahead of proposed reforms.
The regulator stated stablecoins, wrapped tokens, tokenised securities and digital asset wallets are among the products now recognised as financial products under its revised guidance.
Alan Kirkland, ASIC commissioner, said tokenisation and distributed ledger tech are “reshaping global finance”.
“ASIC’s guidance provides the regulatory clarity that firms have been calling for to innovate confidently in Australia.
“Many widely traded digital assets are financial products under current law – and will remain so under the government’s proposed law reform – meaning many providers require a financial services licence.
“Licensing ensures consumers receive the full suite of protections under the law and allows ASIC to act when poor practices lead to harm,” Kirkland said.
The commissioner acknowledged that firms “will need time to consider” the updated guidance and apply for applicable licences.
To ease this burden, ASIC has granted a “sector-wide no-action position” until 30 June 2026.
“ASIC also proposes to provide relief for stablecoin and wrapped token distributors to smooth the transition to proposed law reform,” Kirkland added.
According to the regulator, it has made an “in-principle” decision to offer regulatory relief for distributors for certain stablecoins and wrapped tokens, along with some custodians of digital assets that qualify as financial products.
ASIC confirmed feedback on draft relief instruments is open until 12 November 2025.
Moreover, the regulator released a summary of feedback on Consultation Paper 381, Updates to INFO 225: Digital Assets: Financial Products and Services.
The consultation informed the no-action position and ASIC’s decision to include additional examples in the updated materials.
ASIC said it will factor in the current no-action stance when reviewing past behaviour but will continue to act against serious misconduct or widespread consumer harm.
INFO 225, first released in 2017, applies to financial institutions, brokers, intermediaries and advisers engaging with tokenised products or blockchain-based financial services.
The latest update supports the government’s digital asset platform reforms and follows earlier relief facilitating the Reserve Bank of Australia’s Project Acacia and the licensed distribution of specific stablecoins.
Commenting on the update, Digital Economy Council of Australia CEO Amy-Rose Goodey told InvestorDaily that ASIC has been engaging heavily with DECA, and its “positive to see that level of consultation reflected in the final update”.
“The new guidance gives some welcome clarity, particularly in confirming that bitcoin is not a financial product under existing law,” she said. “That helps give businesses more confidence.”
Despite this, Goodey argued that the “guidance could have gone a little further”.
“There’s still uncertainty around tokens without clear issuers, and the way custody and licensing are defined will really matter in practice,” she said. “Those grey areas can create barriers for smaller players and tech providers who are trying to do the right thing but need clearer rules to plan around.”
“It is also important to see this in context. Treasury is progressing the digital asset platform legislation, ASIC’s guidance has now been released, AUSTRAC is undertaking reforms to update AML and counter-terrorism financing obligations and the broader payments reforms are moving ahead, all at the same time.
“Industry has been asking for clarity for years, but right now we are in the middle of that transition. The key will be making sure these different pieces line up without overlap or unworkable compliance burdens that could see smaller players shut their doors.”
Additionally, the Australian Financial Complaints Authority (AFCA) also welcomed the updated guidance.
“The updated Information Sheet 225 sets out how existing financial services laws apply to digital assets and related services in Australia, including wrapped tokens, stablecoins, tokenised securities and digital asset wallets.
“Firms providing services related to digital assets that are financial products are now required to become a member of AFCA and lodge an AFSL application by 30 June 2026 in line with Information Sheet 225.
“These changes mean vital consumer protections will be extended to investors in cryptocurrency and digital assets,” AFCA said.
