ASIC Eases Licensing Rules for Stablecoin Distributors in Australia

TLDR

• ASIC introduces a class exemption for stablecoin distributors in Australia.
• Intermediaries can now distribute fiat-pegged stablecoins without additional licensing requirements.
• The exemption applies to firms overseen by Australian Financial Services.
• Distributors must provide a Product Disclosure Statement to retail clients.
• ASIC’s decision helps simplify the distribution process ahead of future legislation.

Australia’s Securities and Investments Commission (ASIC) has introduced a new class exemption for stablecoin distributors. This move eliminates the need for separate regulatory approvals for intermediaries handling fiat-pegged stablecoins. ASIC’s decision marks a major shift in the nation’s approach to crypto regulations.

ASIC Eases Licensing for Stablecoin Distributors

ASIC’s new measure will apply to intermediaries, including crypto exchanges and brokers. These entities can now distribute stablecoins without holding additional licenses. This exemption will significantly reduce licensing barriers for those operating in the crypto space. The move targets firms overseen by Australian Financial Services (AFS). They can now offer fiat-backed stablecoins without a separate market or clearing license. The new relief will be effective once it registers on the Federal Register of Legislation.

ASIC’s approach aims to facilitate the distribution of stablecoins ahead of the broader national legislation. It also highlights the commission’s commitment to consumer protection while easing regulatory hurdles. In ASIC’s notice, the regulator confirmed that this exemption would expire on June 1, 2028.

Stablecoin Distribution Exemption Instrument

Under the Stablecoin Distribution Exemption Instrument, distributors can operate without specific licensing. This applies to stablecoins issued by AFS-licensed entities. Distributors must provide retail clients with the issuer’s Product Disclosure Statement. ASIC initially listed Catena Digital Pty Ltd and its AUDMA stablecoin as the first “Named Stablecoin.”

ASIC indicated that it may extend the rule to other stablecoin issuers once they secure AFS licenses. This exemption will act as a bridge to forthcoming stablecoin legislation. It provides clearer paths for stablecoin distribution as new laws come into effect in 2025.

ASIC’s move aligns with global trends in stablecoin regulation. Countries like the U.S. have introduced stablecoin oversight frameworks, with the GENIUS Act. Other regions, such as Hong Kong and China, are also developing similar regulations for digital assets. In Australia, this new exemption sets the stage for future national stablecoin and digital asset platform policies.

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