The Australian Securities and Investments Commission (ASIC) has announced proposed changes to its crypto regulation framework and is seeking public feedback on these updates. The goal is to clarify the classification of digital assets under current law and provide practical examples of assets that qualify as financial products. This includes exchange tokens, NFTs, memecoins, and tokenized assets.
ASIC is also considering adding stablecoins and wrapped tokens to the list of classified financial products. The regulator is seeking input on the potential transition to the government’s proposed digital asset platform and payment stablecoins regimes. Additionally, ASIC is reviewing the Australian Financial Services (AFS) licensing system and may introduce new requirements for digital asset businesses, such as the need for multiple licenses. There is also discussion of a “no action” stance for businesses already in the process of applying for an AFS license.
Feedback on these proposed changes is due by February 28, 2025, with ASIC planning to release the final version of the updated framework in mid-2025. ASIC Commissioner Alan Kirkland emphasized the importance of fostering financial innovation while prioritizing consumer protection. He highlighted the role of a well-regulated financial system in enhancing consumer confidence, market integrity, and healthy competition.
This request for feedback follows the recent update to Information Sheet 225 (INFO 225), which offers new guidance for those offering digital asset products and services. The update clarifies ASIC’s stance on classifying digital assets as financial products and outlines the criteria for obtaining an ASIC license for financial services.
Overall, ASIC’s proposed changes aim to provide greater clarity and regulatory oversight in the rapidly evolving crypto space. By updating its framework and seeking public input, ASIC is working to create a more robust and secure environment for digital asset businesses and consumers alike.