ASIC Expands Digital Asset Licensing with No-Action Period
Australia’s Securities and Investments Commission (ASIC) has expanded its digital asset licensing guidance under the Corporations Act 2001, replacing “crypto assets” with “digital assets” and specifying 13 scenarios—such as staking programs, wrapped tokens and fiat-backed stablecoins—that qualify as financial products requiring an Australian Financial Services (AFS) licence. Custodians holding client assets must meet net tangible asset requirements up to A$10 million unless custody is incidental, and stablecoins may also fall under non-cash payment facility rules. Offshore and decentralized platforms marketed to Australian users remain subject to local oversight. ASIC will offer a transitional no-action position until mid-2026 to allow firms time to apply for licences. This guidance paves the way for the upcoming Digital Asset Platforms and Payment Service Providers legislation, aiming to enhance market clarity and manage risks in Australia’s growing digital asset sector.
Neutral
The expanded guidance clarifies licensing for a broad range of digital assets and offers a transitional no-action period, reducing uncertainty and supporting regulated stablecoin issuance and custody services. While compliance costs rise due to higher asset thresholds and licensing obligations, the phased implementation until mid-2026 limits immediate disruption. Overall, the news is unlikely to trigger significant short-term price moves but may foster long-term institutional confidence in Australia’s digital asset market.