ASIC Unveils Major Stablecoin Relief and Omnibus Rights — But There’s a Catch

Regulators just threw stablecoins a lifeline—and wrapped it in red tape.

The Australian Securities and Investments Commission (ASIC) dropped new guidance that could reshape the digital asset landscape. It’s a two-part play: offering clear relief for certain stablecoin arrangements and introducing a new omnibus licensing framework. The market’s initial reaction? Cautious optimism, laced with a heavy dose of ‘read the fine print.’

The Relief Valve

For projects struggling under the weight of existing financial services laws, ASIC’s relief provides a temporary pass. It targets specific stablecoin models, particularly those pegged to a single fiat currency and held in secure, transparent reserves. The goal is simple: stop stifling innovation while the government works on permanent legislation.

But this isn’t a free pass. Eligibility hinges on strict operational criteria. Issuers must maintain 1:1 backing, provide regular independent audits, and ensure rock-solid custody. Miss a step, and the relief vanishes.

The Omnibus Gambit

Then there’s the omnibus rights framework. Think of it as a regulatory Swiss Army knife—a single license covering a suite of crypto activities like trading, custody, and token issuance. It’s designed to cut through the clutter of applying for multiple, overlapping authorizations.

The catch? It demands a fortress-like compliance operation. Firms need demonstrable risk management, deep liquidity access, and conflict-free governance. ASIC isn’t just opening a door; it’s installing a high-security checkpoint.

The Bottom Line

This move signals a pivotal shift. Australia is attempting to shed its reputation as a regulatory laggard, positioning Sydney and Melbourne as potential crypto hubs. The relief could unlock billions in dormant institutional capital, waiting for regulatory certainty.

Yet, the industry’s cheers are muted. Veteran traders have seen this movie before—a promising regulatory ‘breakthrough’ that ultimately feeds the compliance-industrial complex. The real test won’t be the policy paper, but whether real-world projects can navigate the new rules without their legal bills eclipsing their tech budgets.

ASIC’s play is bold. It provides the clarity the market craved but layers it with complexity that will keep lawyers employed for years. In finance, every solution seems to birth a new problem—preferably a billable one.

ASIC Confirms Omnibus Custody Relief After Industry Feedback

The relief also extends to custody, as providers will be permitted to hold tokenized financial products in omnibus accounts, a structure commonly used in traditional markets but long restricted in crypto.

ASIC said the exemption will only apply if firms maintain proper records and reconciliation procedures. The regulator initially signaled this shift in October when it published the latest update to its key digital-asset guidance, INFO 225.

Tuesday’s announcement marks the end point of a consultation that began on 29 October, when ASIC released Simple Consultation 32 outlining proposed exemptions for stablecoins and wrapped assets.

Australia requires stablecoin and digital asset providers to obtain financial services licenses under new ASIC guidance effective June 2026.#Australia #Stablecoinhttps://t.co/OECNhNHLUz

The regulator received five non-confidential submissions, with industry groups largely supporting the plan but requesting clearer definitions and wider eligibility.

ASIC responded by expanding the scope to include tokens issued by entities that have applied for licenses.

The changes sit on top of a broader framework that ASIC has been assembling throughout the year.

The regulator’s updated INFO 225 guidance, published in late October, confirmed its long-held view that many stablecoins, wrapped tokens, tokenized securities, and even digital asset wallets fall under existing financial product rules.

Stablecoin Issuers Get Temporary Breather Under ASIC’s Transition Plan

That interpretation requires most service providers to hold AFS licenses and comply with investor-protection laws already in force.

To ease the transition, ASIC has adopted a sector-wide no-action stance until June 30, 2026.

Companies will have time to review the new guidance, lodge license applications, or adjust their operations.

Australia's ASIC grants stablecoin intermediary relief from licensing requirements until 2028, with Catena Digital as the first qualified issuer.#Australia #Stablecoinhttps://t.co/vi2mBPwPbb

The temporary relief is expected to remain in place until mid-2028, by which time the government aims to replace it with legislation covering tokenized payments and custody structures.

ASIC has indicated it may add more issuers after several firms said existing licensing hurdles threatened the commercial viability of launching Australian-regulated stablecoins.

Intermediaries must still provide retail investors with Product Disclosure Statements, a condition ASIC argues balances flexibility with consumer safeguards.

Regulators Tighten Grip as Australia Races to Catch Up in Digital Assets

The exemptions land at a moment when policymakers say Australia risks slipping behind global competitors.

ASIC Chair Joe Longo warned last month that tokenization is reshaping capital markets and urged the country to modernize quickly or face what he called a “missed opportunity.”

Government proposals released in September WOULD require exchanges to obtain AFS licenses and impose penalties of up to 10% of annual turnover for rule breaches. Smaller platforms meeting low-threshold criteria would be exempt.

Australia is set to slap crypto platforms with fines as steep as 10% of turnover under tough new draft rules, the Treasury said Thursday.#Australia #CryptoRegulation https://t.co/eVdrLlJgnd

The push for tighter supervision has not stopped enforcement actions. In October, ASIC obtained a temporary travel ban against Blockchain Global director Ryan Xu as it investigates the collapse of the ACX Exchange, which left creditors owed more than A$58 million.

The case remains before the Federal Court.

Australia’s digital-asset sector has grown rapidly, with adoption climbing to 31% in 2025. Self-managed superannuation funds have increased their crypto exposure sevenfold since 2021, reaching A$1.7 billion.

Australia's crypto adoption hits 31% outpacing other developed nations as stablecoins power $46T in transactions and crypto market cap crosses $4T globally.#Australia #Crypto #Adoptionhttps://t.co/ujNdEiEQDn

Large exchanges have begun targeting this market, with Coinbase preparing a dedicated service for retirement accounts.