Australias ASIC explores stablecoins, wrapped tokens in new crypto framework
The Australian Securities and Investments Commission (ASIC) is inviting public feedback on proposed changes to its crypto regulation framework, as outlined in a Dec. 4 announcement.
According to the statement:
ASICs position continues to be that many digital assets are financial products under the current law. [This feedback request] is aligned to and supportive of the Governments broader work in relation to the proposed payment services reform and digital asset facility reforms.
So, ASICs proposed updates aim to clarify the classification of digital assets under current law, providing practical examples of assets that qualify as financial products. These examples include exchange tokens, NFTs, memecoins, and tokenized assets.
The regulator is also exploring whether to add stablecoins and wrapped tokens to the list of classified financial products. ASIC said it seeks input on the issues arising from the potential transition to the governments proposed digital asset platform and payment stablecoins regimes.
In addition, ASIC is reviewing the Australian Financial Services (AFS) licensing system and considering new requirements for digital asset businesses. This could include the need for multiple licenses. The regulator also contemplates a no action stance for businesses already applying for an AFS license.
Feedback is due by 5 P.M. on Feb. 28, 2025. ASIC plans to release the final version of the updated framework in mid-2025.
ASIC Commissioner Alan Kirkland emphasized the commissions goal of fostering financial innovation while prioritizing consumer protection. He noted that a well-regulated financial system would enhance consumer confidence, market integrity, and healthy competition.
Kirkland commented:
Australias financial services regulatory regime is broad and technology neutral. Many digital assets and related products are financial products under the current law. Stakeholders have been calling for greater clarity and in response, we are releasing our draft updated guidance.
This request follows the recent update to Information Sheet 225 (INFO 225), which provides new guidance for those offering digital asset products and services. The update also clarifies ASICs stance on classifying digital assets as financial products and outlines the criteria needed to obtain an ASIC license for financial services.
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