Australia Expands Financial Laws to Cover Digital Assets
- The Australian Securities and Investments Commission (ASIC) updated Info Sheet 225, expanding financial laws to include stablecoins, staking, and tokenized products.
- New custodial standards and classification examples have been introduced, with Australian law applying to offshore platforms serving local users.
- ASIC’s update aligns with Treasury’s upcoming digital-asset-platform legislation, which will introduce formal licensing for exchanges and custody platforms.
- Firms holding client assets must meet net tangible asset thresholds of up to $10 million unless their custody role is incidental.
- Experienced crypto professionals can qualify as responsible managers under AFS license requirements during transitional measures.
ASIC’s revised guidance clarifies when digital-asset products are considered financial products under the Corporations Act, aiming to provide certainty ahead of new legislative changes. The guidance emphasizes that global platforms cannot avoid domestic oversight if they serve Australian users.
With the update, ASIC reinforces its regulatory approach as Australia seeks to balance consumer protection with innovation in the growing digital asset space. (Source)
