Australia’s corporate regulator has released updated guidance on digital assets, which blockchain executives have welcomed, while airing concerns on the speedy issuance of licenses. The Australian Securities and Investments Commission (ASIC) updated its Info Sheet 225 on Wednesday, announcing that companies offering crypto services classified as financial products will need to become a member of the Australian Financial Complaints Authority and lodge for an Australian Financial Services License by June 30.
Distinguishing Financial Products: Bitcoin and NFTs Unlikely to Require Licensing
John Bassilios, a crypto lawyer and partner at Hall & Wilcox, explained that under the new guidance, tokens such as Bitcoin (BTC), gaming non-fungible tokens (NFTs), and tokenized concert tickets are unlikely to be considered financial products. "If you’re an exchange and you only deal in Bitcoin, then you don’t need to apply for a license based on that guidance," he stated.
However, stablecoins, wrapped tokens, tokenized securities, and digital asset wallets are among the categories ASIC considers financial products in its updated guidance. Bassilios noted that this could also encompass yield-bearing stablecoins, tokenized real estate, tokenized bonds, and staking as a service, particularly where restrictions such as a minimum staking balance or lock-up period are in place. ASIC has also made an in-principle decision to grant regulatory relief for stablecoin and some wrapped token distributors to facilitate a smoother transition to proposed law reform.
Clarity Provided, But Structural Bottlenecks Remain a Concern
Steve Vallas, the CEO of the consulting firm Blockchain APAC, commented that the updated guidance sets a demanding standard that will require significant coordination across policy, law, and industry to implement. "ASIC has chosen to operationalise policy ahead of law reform. That approach brings certainty in the short term but also exposes just how much interpretation is now doing the work of legislation," he said.
Vallas anticipates that the true challenge will lie in implementation, with "structural bottlenecks" likely to cause issues. These include limited recognized local expertise, banking access, and insurance capacity. He cautioned that without practical solutions, compliance risks could shift from a legal challenge to a logistical one.
Industry Welcomes Long-Awaited Guidance
Amy-Rose Goodey, the CEO of advocacy group the Digital Economy Council of Australia, expressed that the industry had been anticipating clarity like this for a considerable period. "It gives us an indication and that visibility on ASIC’s position, how they’re going to treat the businesses within the digital asset sector, which we were not fully across until this point," she remarked.
However, Goodey shares concerns regarding ASIC's resourcing and its capacity to process a large volume of licenses in a timely manner to ensure businesses can achieve compliance. The industry is currently navigating a "transition stage," according to Goodey, with businesses actively restructuring and reviewing the licenses they are required to hold.
The Albanese government proposed a new crypto framework in March, which aims to regulate exchanges under existing financial services laws. The Treasury recently concluded a consultation on draft legislation that would extend finance sector laws to crypto service providers.