Australia updates rules to classify stablecoins as financial products

TLDR

• ASIC confirms stablecoins and wallets are now financial products in law.
• Firms must get licensed to offer stablecoins and tokenized assets.
• Sector-wide no-action relief applies until June 30, 2026.
• ASIC consulted with industry before finalizing the updated guidance.

Australia’s financial regulator has taken a clear step toward tightening oversight of digital assets. The Australian Securities and Investments Commission (ASIC) has released new guidance that classifies stablecoins, wrapped tokens, tokenized securities, and digital asset wallets as financial products. Businesses offering these assets must now hold a financial services license. The move follows extensive industry consultation and aligns with the Australian government’s broader effort to shape crypto regulation.

ASIC Expands Definition of Financial Products to Cover More Digital Assets

On October 29, 2025, ASIC announced an update to its guidance that redefines several digital asset classes under existing financial laws. The products affected include stablecoins, wrapped tokens, tokenized securities, and digital asset wallets.

Under the new interpretation, any company that offers these products will need to hold an Australian Financial Services License (AFSL). This ensures that these businesses operate within the same regulatory environment as traditional financial service providers.

ASIC Commissioner Alan Kirkland said, “Many widely traded digital assets are financial products under current law… meaning many providers require a financial services license.” He added that licensing requirements help protect consumers and enable the regulator to take action when needed.

Temporary Relief Provided as Industry Adjusts

To support businesses during the transition, ASIC has issued a sector-wide “no-action” relief that lasts until June 30, 2026. This means ASIC will not take enforcement action against providers who are not yet licensed, as long as they are making efforts to comply.

The relief is aimed at giving companies time to understand the updated classification and prepare their license applications. It also allows service providers to make operational changes without facing immediate penalties.

ASIC is also considering targeted relief measures for certain distributors and custodians. These measures are focused on stablecoin and wrapped-token services and are expected to remain in place while broader law reforms are being finalized.

Consultation and Legislative Developments

ASIC’s announcement follows nearly a year of consultation with the digital asset industry. In December 2024, the regulator released a paper asking for feedback on how current financial laws should apply to crypto products.

Many industry stakeholders requested more clarity, particularly regarding the treatment of stablecoins and wrapped tokens. In response, ASIC adjusted its guidance and proposed specific relief conditions based on the feedback it received.

The Australian Treasury is also working on draft laws that would require crypto exchanges and some service providers to be licensed. These draft rules are designed to establish a stronger regulatory framework and mitigate regulatory uncertainty.

Previous Measures to Ease Market Entry for Stablecoin Intermediaries

In September 2025, ASIC introduced a class exemption that allowed licensed financial intermediaries to distribute stablecoins without needing separate approvals. This move was intended to streamline operations for firms already holding an AFSL.

The exemption helped certain players enter the market more easily, though they still had to meet basic compliance requirements. It now forms part of a larger plan to manage the digital asset space while broader reforms are underway.

ASIC said the new updates align with future reforms and prepare the market for a regulatory structure that covers both traditional and digital financial products.

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