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Australia's corporate regulator flags risks from rapid innovation in digital assets

2026/01/27 15:15
6 min read
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Australia's corporate regulator flags risks from rapid innovation in digital assets

The Australian Securities and Investments Commission has flagged digital assets and AI risks in its annual report.

By Omkar Godbole, AI Boost|Edited by Sam Reynolds
Jan 27, 2026, 7:15 a.m.
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What to know:

  • Australia's corporate regulator, ASIC, warns that rapid growth in unlicensed crypto, payments and artificial intelligence firms has created regulatory gaps that expose consumers to risk.
  • In its new "Key issues outlook 2026" report, ASIC says it is up to the government to decide whether emerging digital asset products and services should fall under existing regulatory frameworks.

The Australian Securities and Investments Commission (ASIC), an independent government body acting as the national corporate regulator, has identified regulatory gaps in fast-growing fintech areas, especially digital assets.

The regulator's new report titled "Key issues outlook 2026" released Tuesday expressed concerns that consumers are exposed to the rapidly expanding and unlicensed crypto, payments and artificial intelligence companies.

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It argued that it is for the government to determine whether these new products or services should be brought under the regulatory purview, while warning that some entities may actively look to remain unlicensed, adding to the "perceived regulatory uncertainty."

This behavior of some firms mandates that ASIC remains focused on watching regulatory boundaries and keeping licensing rules clear in 2026, the regulator said.

ASIC's warning comes weeks after Australia introduced amends to the Corporations Act 2001 and Australian Securities and Investments Commission Act 2001 to carve out rules for companies handling customers' digital assets.

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