ASIC Expands Digital Asset Relief For Stablecoin Intermediaries

Australia’s securities regulator has locked in a new phase of crypto relief, signing off on licensing and custody exemptions for certain stablecoins and wrapped tokens to “further foster innovation and growth in Australia’s digital assets and payment sectors.”

The class relief announced Thursday exempts intermediaries engaging in the secondary distribution of eligible stablecoins and wrapped tokens holding separate Australian Financial Services (AFS), market, or clearing facility licences, according to the Australian Securities and Investments Commission.

ASIC also granted separate relief allowing providers to hold digital assets that are financial products in omnibus accounts, subject to appropriate record-keeping arrangements and reconciliation procedures.

The latest measure builds on ASIC’s September decision to grant class relief for stablecoin intermediaries, which allowed distributors to operate without separate licensing when handling certain stablecoins from AFS-licensed issuers.

“This relief was foreshadowed when ASIC’s updated digital asset guidance (INFO 225) was published in October,” the regulator said, which clarified how existing laws apply to digital assets and introduced a no-action position until June 30, 2026, for firms seeking licences.

The guidance noted that products such as stablecoins, wrapped tokens, tokenized securities andcrypto wallets are considered financial products under existing law, meaning that providers require AFS licenses.

On the same day, ASIC began seeking feedback on the proposed relief measures. The consultation period closed in mid-November, with Thursday’s announcement representing the finalization of that relief.

Industry submissions backed omnibus account structures for digital-asset custody for their operational efficiencies in terms of speed and cost benefits, though some sought clearer record-keeping rules that ASIC chose to keep principles-based rather than prescriptive.

Eligible stablecoins must maintain reserves equal to or greater than the total underlying currency amount, with unconditional redemption rights for holders. Wrapped tokens must maintain equivalent reserves of underlying digital assets.

Stablecoin issuers are required to publish quarterly reserve reports after four months and annual audited reports after 16 months, confirming reserves are cash or cash equivalents and fully cover all tokens in circulation.

“The ASIC relief is welcome although industry has historically erred on the side (opposite to ASIC) that the token in and of itself is not typically the financial product or security—including wrapped tokens and stablecoins,” Joni Pirovich, founder and CEO of The Crystal aOS, a compliance infrastructure layer for crypto firms, told Decrypt.

Instead, she said, the industry has adopted a “factual view where often the token can be used as part of one or more arrangements that may be financial products or securities but that fact alone does not make the token the regulated thing.”

Pirovich noted platforms must carefully review any wording about how a token is used in off-exchange arrangements that are financial products to ensure “no general or special financial advice is being given.”

The regulator indicated the framework could expand as additional stablecoin and wrapped token issuers secure AFS licences, suggesting major growth potential as Australia’s digital asset sector matures.

The instruments will repeal automatically on January 1, 2029, providing the market time to transition to the Treasury’s broader regulatory framework.