ASIC Demands AFSL for Stablecoins & Wrapped Tokens by 2026
On October 29, ASIC updated guidance to classify stablecoins, wrapped tokens, tokenized securities and digital wallets as financial products under existing laws. From June 30, 2026, issuers of these crypto assets must secure a stablecoin license by obtaining an Australian Financial Services Licence (AFSL). ASIC has granted sector-wide no-action relief and in-principle exemptions for stablecoin and wrapped-token distributors and custodians until the deadline. This follows a year-long consultation revising the 2017 INFO 225 sheet and aligns with the government’s draft digital asset platform legislation, which would require AFSL registration for exchanges and custodians, exempt small operators and impose fines for non-compliance. Exemptions cover Bitcoin-only exchanges, gaming NFTs and tokenized tickets. Industry leaders warn that ASIC’s limited application capacity, expertise, banking access and insurance could complicate the stablecoin license requirement. Traders should prepare for higher compliance costs, shifts in issuance strategies and stronger consumer protection measures designed to boost confidence in Australia’s digital asset market.
Neutral
These AFSL requirements mark a significant regulatory tightening that will increase compliance costs and operational burdens for stablecoin issuers, wrapped token distributors and custodians. In the short term, the sector-wide relief should cushion the impact, but traders may see reduced product liquidity or issuance delays as firms adapt. Over the long term, clearer rules and enhanced consumer protections could boost confidence in Australia’s digital asset market, supporting stablecoin adoption and trading volumes. Since stablecoins aim to maintain a fixed value, their price impact is expected to be neutral, though market sentiment may benefit from the increased regulatory clarity.