Australia ASIC Removes Licensing Hurdles for Stablecoin and Wrapped Token Markets
Australia’s financial regulator has introduced regulatory exemptions to simplify licensing requirements for businesses operating in the stablecoin and wrapped token markets. The move is designed to accelerate innovation in the digital asset sector while the nation transitions toward a comprehensive crypto regulatory framework.
The Australian Securities and Investments Commission (ASIC) class relief measures that remove the need for intermediaries handling certain stablecoins and wrapped tokens to obtain separate Australian Financial Services (AFS), market, or clearing and settlement facility licences.
This change reduces compliance costs and simplifies market entry. Eligible intermediaries can now operate under a single regulatory umbrella while meeting record-keeping and operational standards. The exemptions also permit the use of omnibus account structures, pooling client assets while maintaining detailed records, without requiring separate licences.
These relief measures coincide with broader , which will require digital asset platforms and custody services to comply with traditional financial regulations. ASIC’s exemptions provide transitional relief, remaining in effect for a multi-year period to give firms time to adapt.
By lowering entry barriers, Australia could attract more digital asset businesses, stimulate stablecoin adoption, and strengthen its position as a competitive crypto hub. The exemptions are expected to facilitate real-world applications of stablecoins, including payments, cross-border transfers, and treasury operations, by reducing upfront compliance costs and administrative burdens.
ASIC emphasized that consumer protection remains a priority. Providers operating under the exemptions must ensure transparency, clear disclosure, and robust internal controls, particularly for retail clients. The approach reflects a global trend of balancing innovation with oversight as stablecoins and digital assets become increasingly significant in financial markets.
ASIC Moves to Support Crypto Innovation While Tightening Financial Oversight
Australia’s corporate regulator, ASIC, is striking a balance between fostering innovation in digital assets and maintaining strict oversight of financial markets.
The regulator recently introduced exemptions for digital asset service providers, allowing firms to . The move is intended to reduce compliance burdens and encourage adoption of tokenised financial products while aligning custody practices with global standards.
At the identical time, ASIC has demonstrated its enforcement rigor. It later than finding deficiencies in its target market determination and following the firm’s cessation of financial services operations.
In fact, ASIC Chair Joe Longo is crucial for Australia to remain competitive globally.
