Australia’s regulator will now treat stablecoins and wrapped tokens as financial products, requiring firms to obtain a local services license.
Australia’s financial watchdog has taken a major step in clarifying its stance on digital assets. The Australian Securities and Investments Commission (ASIC) announced that stablecoins, wrapped tokens, tokenized securities and digital wallets will now be considered financial products. Companies offering such assets must obtain an Australian Financial Services License (AFSL).
ASIC Commissioner Alan Kirkland said, “Many digital assets are already financial products under existing law, and that won’t change under the upcoming reforms. Licensing ensures consumer protection and strengthens regulatory oversight.”
To help companies adapt, ASIC has introduced a no-action relief until June 30, 2026, allowing time for review and license applications. The regulator also proposed temporary relief measures for stablecoin and wrapped-token distributors. The decision follows consultations launched in 2024 after the industry called for greater clarity on asset classifications.
The move reinforces Australia’s effort to build a clearer legal framework for the crypto market. Recent actions — including exemptions for stablecoin intermediaries and a proposed licensing regime for exchanges — highlight the country’s determination to integrate digital assets into its financial system.
