Australia Cuts Red Tape: Stablecoin Distribution Now Exempt from Additional Licensing

Australia just handed crypto a massive win—stablecoin issuers can now operate without jumping through extra regulatory hoops.

Streamlined Compliance

The move slashes bureaucratic barriers, letting projects distribute dollar-pegged assets under existing frameworks. No more waiting for special approvals—just deploy and scale.

Market Momentum Builder

This isn’t just paperwork; it’s fuel for adoption. Faster onboarding means more liquidity, tighter spreads, and fewer excuses for TradFi dinosaurs still clinging to wire transfers.

Global Implications

Watch other jurisdictions follow suit—or get left behind. Australia’s pivot signals a maturation in crypto policy, prioritizing innovation over obstruction.

Because sometimes the best regulation is less regulation.

ASIC’s Stablecoin Exemption

With the release of the “Stablecoin Distribution Exemption Instrument,” companies holding an Australian Financial Services (AFS) license now can offer stablecoins to users without a separate market or exchange license. This ruling applies to crypto exchanges, brokers, and other intermediaries, enhancing their operational capabilities.

The exemption includes specific conditions to protect consumers. Distributors serving individual investors are required to present the Product Disclosure Statement of the stablecoin issuer to their customers. This exemption will remain valid until June 1, 2028.

Initially, the AUDMA stablecoin issued by Catena Digital has been listed as a “Designated Stablecoin.” ASIC mentioned that other stablecoin issuers, who acquire an AFS license in the future, could also be included in this scope.

Australia’s Cryptocurrency Regulation Framework

The Australian government had outlined a dual regulatory model for cryptocurrency platforms and payment-focused stablecoins in a policy paper released in March. This new exemption is positioned as a temporary bridge until the implementation of the legal framework.

The policy paper also emphasized that businesses wishing to offer only stablecoins or specific coins don’t need to obtain a financial market license. This clarifies the distribution process for companies operating in the sector, making their operations more transparent.

Globally, stablecoin regulations are rapidly expanding. The United States has implemented its first national framework with the GENIUS Act. Regions such as Hong Kong and China are also preparing their regulations. Australia’s newly introduced regulation signifies its participation in this global trend.