The Australian Securities and Investments Commission (ASIC) has unveiled a significant new exemption designed to supercharge growth and innovation within Australia’s digital asset and payments landscape. This updated framework means that intermediaries who distribute stablecoins—digital currencies pegged to traditional assets—from an Australian Financial Services (AFS) licensed provider will no longer need to secure additional AFS, Australian market, or clearing and settlement facility licenses. A crucial condition, however, is that these intermediaries must always furnish clients with the issuer’s comprehensive product disclosure statement (PDS) when one is available.
Streamlining Stablecoin Distribution While Upholding Strict Oversight
This class exemption for stablecoin intermediaries will become effective once officially recorded in the Federal Register of Legislation. ASIC also indicated that as more qualified stablecoin issuers secure AFS licenses, the scope of this exemption could broaden to include even more intermediaries. Similar to the initial phase, these additional intermediaries will also be mandated to provide clients with the stablecoin issuer’s product disclosure statement, if prepared.
This careful balance between fostering innovation and safeguarding consumers underscores a key objective for Australia’s regulators. ASIC is committed to ensuring robust protections remain firmly in place, even as it relaxes some requirements for intermediaries. By keeping AFS licenses mandatory for stablecoin issuers, the regulatory body guarantees essential oversight, effective risk management, and sustained consumer trust, even with increased flexibility for distributors.
Stablecoins, often tied to fiat currencies or other traditional assets, are increasingly central to regulatory discussions globally. These digital currencies, alongside meme coins, exchange tokens, commodity-linked tokens, and wrapped assets, are all addressed in ASIC’s proposed revisions to its crypto guidance (INFO 225) within its 2024 consultation. The updated rules and public feedback from this process are anticipated for release in the coming weeks.
This latest initiative builds upon ASIC’s earlier efforts to encourage regulated experimentation within the digital assets sector. For instance, in July, regulators actively supported Project Acacia, a program that facilitated real-world testing of tokenized assets and digital money. Furthermore, ASIC is collaborating closely with Australia’s Department of the Treasury on a comprehensive reform agenda, which includes developing a dedicated regulatory framework for payment stablecoins—a topic initially discussed in 2023.
By reducing the barriers for intermediaries to distribute stablecoins, while simultaneously maintaining stringent oversight for issuers, Australia demonstrates a carefully considered and deliberate approach to digital asset integration. This strategy clearly indicates the nation’s commitment to seamlessly embed digital assets into its financial system, all without compromising essential investor protections.
Disclaimer: Cryptocurrency is an unregulated digital currency, not legal tender, and inherently subject to market risks. The content within this article is provided for informational purposes only and should not be considered financial advice, trading advice, or any form of recommendation. Neither we nor any affiliated entities are responsible for any potential losses incurred from investments based on the information presented here.