ASIC Clarifies Regulatory Framework for Digital Assets, Offers Transitional Relief Ahead of Law Reforms

​The Australian Securities and Investments Commission (ASIC) has issued updated guidance on the application of existing financial laws to digital assets, providing clearer regulatory boundaries for firms and enhanced protections for investors.

In its updated INFO 225: Digital Assets: Financial Products and Services, ASIC identifies several digital asset products—such as stablecoins, wrapped tokens, tokenised securities, and digital asset wallets—as financial products under current law.

ASIC Commissioner Alan Kirkland said the new guidance addresses long-standing industry calls for regulatory clarity. “Distributed ledger technology and tokenisation are reshaping global finance,” he said. “Many widely traded digital assets are financial products under current law and will remain so under proposed reforms, meaning many providers require a financial services licence.”

ASIC confirmed a sector-wide no-action position until 30 June 2026, giving firms time to review the guidance and apply for the appropriate licences. The regulator also announced plans for targeted relief to help stablecoin and wrapped token distributors transition ahead of proposed law reforms.

ASIC has made an in-principle decision to grant regulatory relief to certain stablecoin and wrapped token distributors and custodians of digital assets that qualify as financial products. Public feedback on the draft relief instruments is open until 12 November 2025.

The updated guidance incorporates feedback received through Consultation Paper 381 (CP 381): Updates to INFO 225, which was released in December 2024. Submissions from CP 381 influenced ASIC’s decision to issue transitional relief and include more detailed examples in the updated materials.

ASIC said it will take the current no-action position into account when reviewing past conduct but will continue to pursue cases involving serious misconduct or significant consumer harm.

Originally published in 2017, INFO 225 has undergone several updates to reflect the evolving digital asset landscape. The latest version aligns with the Australian Government’s forthcoming Digital Asset Platform (DAP) reforms and complements prior ASIC initiatives, including regulatory relief supporting the Reserve Bank of Australia’s Project Acacia and licensed distribution of certain stablecoins.

The regulator stated that these measures reinforce its commitment to fostering responsible innovation within Australia’s financial services sector.