Australian Securities and Investments Commission (ASIC) Seeks Public Feedback on Crypto Regulation Updates
The Australian Securities and Investments Commission (ASIC) is reaching out to the public for feedback on proposed changes to its crypto regulation framework, as announced on Dec. 4.
Proposed Updates to Digital Asset Classification
“ASIC’s position continues to be that many digital assets are financial products under the current law. This feedback request is aligned with the Government’s efforts in payment services reform and digital asset facility reforms.”
ASIC’s proposed updates aim to provide clarity on the classification of digital assets under current law. The regulator plans to offer practical examples of assets that qualify as financial products, including exchange tokens, NFTs, memecoins, and tokenized assets.
Exploring Addition of Stablecoins and Wrapped Tokens
ASIC is considering adding stablecoins and wrapped tokens to the list of classified financial products. The regulator is seeking input on the potential challenges that may arise from transitioning to the government’s proposed digital asset platform and payment stablecoins regimes.
Review of AFS Licensing System
ASIC is also reviewing the Australian Financial Services (AFS) licensing system and contemplating new requirements for digital asset businesses. This may involve the need for multiple licenses, with a potential “no action” stance for businesses in the process of applying for an AFS license.
Timeline and Goals
Feedback on the proposed updates is due by Feb. 28, 2025, with ASIC planning to release the final version of the updated framework in mid-2025. ASIC Commissioner Alan Kirkland highlighted the commission’s commitment to fostering financial innovation while prioritizing consumer protection.
“Australia’s 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.”
Recent Updates and Guidance
This feedback request follows the recent update to Information Sheet 225 (INFO 225), which offers new guidance for providers of digital asset products and services. The update clarifies ASIC’s position on classifying digital assets as financial products and outlines the criteria for obtaining an ASIC license for financial services.
