Australia’s securities regulator, the Australian Securities and Investments Commission (ASIC), has revealed plans to implement stricter oversight of the cryptocurrency market, with a focus on improving consumer protection and addressing “practical licensing issues” related to stablecoins and wrapped tokens.
In a press release on December 4, ASIC unveiled Consultation Paper 381, outlining proposals to address regulatory gaps within the cryptocurrency industry and ensure that digital assets comply with existing financial laws. The consultation is part of ASIC’s broader effort to foster a well-regulated and responsible crypto ecosystem.
ASIC Commissioner Alan Kirkland emphasized the importance of balancing innovation with consumer protection. He noted that the regulator aims to promote “responsible financial innovation” while ensuring that the financial system remains safe and beneficial for the community. “Many digital assets and related products are financial products under the current law,” Kirkland stated. “Stakeholders have been calling for greater clarity, and in response, we are releasing our draft updated guidance.”
The new proposals aim to provide clearer definitions for how current financial product regulations apply to cryptocurrencies and related assets. Specifically, ASIC is considering adding 13 practical examples to its guidance, offering more clarity on how existing laws could apply to stablecoins, wrapped tokens, and other digital assets.
In addition to the guidance updates, the consultation paper suggests potential regulatory relief measures for businesses adapting to the new rules, as well as transitional approaches to help firms navigate the updated framework. ASIC is also exploring a “no action” position for businesses that are in the process of applying for or modifying licenses.
Public feedback on the consultation is open until February 28, 2025, with ASIC planning to finalize the updated guidance (INFO 225) by mid-year 2025.
Alongside these proposals, Australia is also reviewing its approach to cryptocurrency taxation. The Department of Treasury is seeking input from the Organization for Economic Cooperation and Development (OECD) to refine its strategy. As previously reported by crypto.news, the Treasury is considering two options: adopting the OECD’s Crypto Asset Reporting Framework (CARF) or customizing it to meet local needs. The CARF aims to enhance tax transparency by tracking crypto transactions over $50,000 and sharing the data with global tax authorities.
This ongoing regulatory review signals Australia’s commitment to creating a clearer, more secure environment for crypto businesses and investors, while ensuring the protection of consumers in the rapidly evolving digital asset space.
