Australia’s Financial Regulator Flags Broader Oversight of Crypto Under Updated Guidance
The Australian Securities and Investments Commission (ASIC) has released an updated version of Info Sheet 225, outlining extensive guidance on how financial-services laws apply to digital assets, such as stablecoins and staking. This revised document, intended to clarify when digital assets are classified as financial products under the Corporations Act, replaces the previous terminology of 'crypto-assets' to encompass a broader range of tokenized products. The guidance aims to provide businesses with clarity ahead of upcoming legislation governing digital payment platforms and crypto exchanges, which is set to formalize licensing requirements. It emphasizes that Australian law applies to overseas platforms serving local users and outlines new custodial obligations, including a requirement for firms holding client assets to meet certain net tangible asset thresholds. Additionally, ASIC has expanded its framework to cover various types of digital assets, maintaining that many options, including yield-bearing tokens and staking programs, will necessitate an Australian Financial Services license. The update increases the number of worked examples from 13 to 18 and responds to ongoing government efforts to enhance consumer protection in the cryptocurrency space.
Source 🔗