Australia’s ASIC proposes updates to crypto asset guidance

The Australian Securities and Investments Commission (ASIC) has announced an expansion to its cryptocurrency regulatory framework through Consultation Paper 381.

ASIC proposed comprehensive updates to Information Sheet 225 regarding digital assets and financial products via a news release.

ASIC commissioner stressed commitment to responsible innovation 

ASIC Commissioner Alan Kirkland emphasized the regulator’s commitment to creating responsible financial innovation while maintaining robust consumer protection measures. The proposed updates include 13 detailed practical examples showing how existing financial product definitions apply to digital assets and related products.

The commissioner stressed that Australia’s financial services regulatory regime maintains a technology-neutral stance, with many digital assets and related products already falling under existing financial product categories. This approach aims to create consistency across traditional and digital financial markets while supporting innovation.

ASIC’s focus areas 

The consultation paper seeks stakeholder input across several critical areas:

1. Updated guidance in INFO 225, including practical worked examples
2. Application of existing AFS license processes to digital asset businesses
3. Practical licensing considerations for wrapped tokens and stablecoins
4. Potential regulatory relief measures
5. Proposed transitional approaches for the implementation period

ASIC has shown flexibility by proposing a class ‘no action’ position for digital asset businesses actively pursuing Australian Financial Services licenses, Australian Markets licenses, or Clearing and Settlement Facility licenses. It claims the approach acknowledges the industry’s need for adaptation time while maintaining regulatory oversight.

The proposal builds upon Australia’s existing cryptocurrency regulatory framework, where the Australian Transaction Reports and Analysis Centre (AUSTRAC) oversees compliance with anti-money laundering laws.

AUSTRAC requires all cryptocurrency exchanges to register and implement comprehensive know-your-customer processes, creating a multi-layered regulatory approach to digital asset oversight. ASIC has established a clear timeline for the consultation process:

• Feedback submission deadline: February 28, 2025, 5 PM
• Final version publication: Mid-2025
• Implementation period: To be determined based on consultation feedback

The regulator plans to consider all stakeholder feedback before finalizing the updated INFO 225. ASIC stressed its intention to continue using its full range of regulatory and enforcement tools to protect consumers and maintain market integrity in the digital asset sector.

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