Australia Tightens Crypto Oversight, Requires Licenses for Stablecoin and Token Providers
Australia’s financial regulator has taken a firm step toward tightening control of the crypto market. The Australian Securities and Investments Commission (ASIC) now classifies stablecoins, wrapped tokens, tokenised securities, and digital wallets as financial products. This means companies offering these services must obtain an Australian Financial Services (AFS) license to operate legally.
In a statement released on October 29, ASIC Commissioner Alan Kirkland stated that digital asset providers must adhere to the same laws that apply to other financial services. “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 license,” he said.
To help the industry adjust, ASIC introduced a no-action relief period running until June 30, 2026. This gives crypto companies time to review their services and apply for the proper licenses. The regulator also plans to provide temporary relief to stablecoin and wrapped-token providers, as well as custodians, before the Treasury’s new rules take effect.
The latest guideline expands on ASIC’s December 2024 review and now includes 18 practical examples covering exchange tokens, yield-earning products, gaming NFTs, and staking services. The regulator explains how it determines whether a digital asset should be treated as an investment product, derivative, or payment service.
ASIC also warned that foreign and decentralised crypto platforms must follow Australian laws if they target local users. Companies that hold customer funds are now required to maintain at least $10 million in net assets, except for those with minimal operations.
According to a spokesperson for Swyftx, the government aims to make Australia a leader in digital assets while ensuring innovation and consumer protection. ASIC added that, it will continue working with AUSTRAC, APRA, and the Reserve Bank to align the new rules with upcoming legislation on digital asset platforms and payment providers
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