Stablecoins, wrapped tokens considered as financial products: ASIC
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The news: The Australian Securities and Investments Commission (ASIC) has clarified that stablecoins, wrapped tokens, tokenised securities and digital asset wallets are considered financial products in its latest guidance.
The context: ASIC’s latest guidance means that digital asset providers will need to have an Australian financial services licence (AFSL) to offer these products.
However, the corporate regulator has granted a sector-wide “no-action position” until 30 June 2026 to allow providers to consider its guidance and to apply for licences.
ASIC has also noted that it will provide regulatory relief to certain stablecoin and wrapped token distributors to "smooth the transition" to Treasury's proposed cryptocurrency law reform.
ASIC said the current “no-action position” would be factored in when considering historical conduct but would act against egregious conduct where it would see significant consumer harm or widespread systemic misconduct.
What they said: ASIC commissioner Alan Kirkland said: “Distributed ledger technology and tokenisation are reshaping global finance. ASIC’s guidance provides the regulatory clarity that firms have been calling for to innovate confidently in Australia”.
“Many widely traded digital assets are financial products under current law – and will remain so under the Government’s proposed law reform – meaning many providers require a financial services licence. Licensing ensures consumers receive the full suite of protections under the law and allows ASIC to act when poor practices lead to harm.”
The source: ASIC media release
