The Australian Securities and Investments Commission has released a consultation paper proposing updates to its regulatory guidance on digital assets, focusing on compliance requirements under the Corporations Act.
The revisions to Information Sheet 225 (INFO 225) include 13 worked examples designed to clarify when digital assets qualify as financial products, such as stablecoins, wrapped tokens, and staking services.
Among the examples, ASIC outlines scenarios involving exchange tokens, yield-bearing stablecoins, and tokenized assets like concert tickets.
The draft guidance suggests that classification depends on "the rights, benefits, expectations, and product features inherent to, and offered together with the token."
ASIC is offering temporary relief from penalties for businesses working on getting licensed as long as they meet certain requirements, which includes joining the Australian Financial Complaints Authority.
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ASIC is also considering further examples for wrapped tokens and stablecoins, acknowledging their complex regulatory implications.
BTC Markets CEO Caroline Bowler welcomed the updates, describing the approach as collaborative and necessary to foster innovation.
“I’m pleased the industry now has an update to work from, and it’s encouraging to see ASIC engaging so consultatively with industry stakeholders,” Bowler told Decrypt in a statement.
Bowler also noted the potential impact on access to key tools such as stablecoins, warning it could drive Australian users to overseas platforms.
“This is especially relevant given their integral role in decentralized finance, she said. “As a result, Australians may find themselves turning to overseas platforms to access these tools.
However, she added that the exclusion of non-financial products like NFTs and meme coins was a positive step for the industry.
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Australia's efforts to regulate digital assets have encountered delays due to evolving policy approaches and industry concerns.
In October 2023, the government released a proposal paper suggesting that crypto exchanges and digital asset platforms be subject to existing financial services laws.
ASIC has encouraged crypto companies to apply for an Australian Financial Services Licence, offering a grace period from legal action during application processing.
However, domestic industry leaders, such as Swyftx CEO Jason Titman, have expressed concerns over the "far-reaching implications" of ASIC’s proposed regulations, including requirements to issue audited prospectuses and treat exchanges like financial markets.
Feedback on the paper, including its potential compliance costs and impact on competition, is due by February 28 of next year, with updated guidance expected by mid-2025.