Australia’s markets regulator is sharpening its approach to digital assets, expanding the way financial laws apply to tokens, custody 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 to Fact Sheet 225, which expands its scope from “crypto assets” to “digital assets” and introduces 13 practical examples explaining when tokens, staking programs and tokenized products require financial services licenses.
The regulator’s move comes as the Treasury finalizes its digital asset platforms and payment service providers bills, which will introduce formal licenses for exchanges, custodians and certain stablecoin issuers. ASIC’s latest guidance effectively sets the stage for those laws by emphasizing that most cryptocurrency-related activity is already captured in the current framework.
Among the new examples, ASIC notes that fiat-backed stablecoins could be treated as cashless means of payment, while wrapped tokens may qualify as derivatives, both subject to licensing by the Australian Financial Services (AFS).
The commission reinforced that Australian law applies to offshore and decentralized structures marketed or sold to local users, warning that global platforms cannot rely on geography to avoid oversight.
ASIC also outlined new custody obligations, requiring firms that hold client assets to meet net tangible asset thresholds of up to A$10 million (US$6.5 million), unless their custody role is considered incidental.
While ASIC is offering a transitional “no action” period for companies applying for appropriate licenses once the guidance is finalized, it made clear that enforcement expectations are rising.
The update builds on Australia’s continued efforts to bring the crypto sector within its established financial services perimeter. As Treasury’s legislative proposals move closer to unveiling, ASIC’s stance indicates the country’s regulators are simultaneously moving to formalize digital asset compliance.
