The Australian Securities and Investments Commission (ASIC) is inviting public feedback on proposed changes to its crypto regulatory framework, as outlined in a December 4 announcement.
According to the statement:
“ASIC’s position remains that many digital assets are financial products under the current law. [This feedback request] is aligned with and supports the government’s broader work on the proposed payment services reform and the digital asset facility reform.”
The updates proposed by ASIC are therefore intended to clarify the classification of digital assets under current legislation, by providing practical examples of assets that qualify as financial products. These examples include exchange tokens, NFTs, memecoins, and tokenized assets.
The regulator is also examining whether stablecoins and wrapped tokens should be added to the list of classified financial products. ASIC said it is seeking input on the issues arising from the potential transition to the government’s proposed digital asset platform and payment stablecoins regimes.
In addition, ASIC is reviewing the Australian Financial Services (AFS) licensing system and considering new requirements for digital asset businesses. This may mean, among other things, that multiple licenses are required. The regulator is also considering adopting a “no action” stance for companies already applying for an AFS license.
Feedback must be submitted by 5:00 PM on February 28, 2025. ASIC plans to release the final version of the updated framework in mid-2025.
ASIC Commissioner Alan Kirkland highlighted the commission’s aim to promote financial innovation while prioritizing consumer protection. He noted that a well-regulated financial system would enhance consumer confidence, market integrity and healthy competition.
Kirkland noted:
“Australia’s financial services regulatory regime is broad and technology neutral. Many digital assets and related products are financial products under current law. Stakeholders have called for greater clarity and in response we are publishing our draft updated guidance.”
This request follows the recent update to Information Sheet 225 (INFO 225), which provides new guidance for those offering digital asset products and services. The update also clarifies ASIC’s position on classifying digital assets as financial products and outlines the criteria required to obtain an ASIC financial services license.