ASIC Unleashes Crypto Regulation Overhaul: Stablecoins and Staking Services Now Under Financial Microscope

Australia's financial watchdog just dropped the regulatory hammer—and crypto markets are feeling the shockwaves.

The New Rulebook

ASIC's updated guidance transforms how financial laws apply to digital assets. No more regulatory gray areas—stablecoins, staking services, and crypto platforms now face the same scrutiny as traditional finance. The era of 'wild west' crypto operations just got a major reality check.

Stablecoins Under Fire

Those 'stable' coins? Turns out they're not so stable when regulators come knocking. ASIC's treating them like financial products—meaning disclosure requirements, licensing, and all the paperwork crypto bros love to ignore.

Staking Gets Serious

Passive income through staking? More like passive regulatory attention. Service providers now need proper licensing, risk management, and consumer protections. That 8% APY just got a whole lot more complicated.

Another case of regulators being late to the party but still trying to control the music—because nothing says 'financial innovation' like making crypto act exactly like the traditional system it was designed to bypass.

Treasury and ASIC work together to prepare for new crypto licensing rules

The ASIC replaced the old term “crypto assets” with “digital assets” to make it easier for businesses to determine which rules apply to them and how to comply with them. This update is in line with the Australian Treasury’s new Digital Asset Platforms Bill and Payment Service Providers Bill.

The new bills will help introduce official licenses for crypto exchanges, stablecoin issuers, and custody service providers by 2026. In addition to the updated terms, the ASIC expanded the examples of financial products to illustrate how the current Corporations Act categorizes different digital assets.

The agency also introduced new sections to help businesses know how to handle client assets, risks, and transition smoothly into the new licensing system. The regulator stated that it aims to provide companies with sufficient time to prepare for the new laws while also protecting customers. However, they did make it clear that the examples and sections will not replace the law, but only guide companies.

With this new guidance, companies will understand how the current financial rules categorize their services and whether any of them require an Australian Financial Services (AFS) licence.

ASIC tightens custodial standards and extends Australian law to offshore crypto services

The ASIC stated that some companies WOULD intentionally attempt to circumvent the laws because they believe the laws don’t fully apply to them, as they are based outside the country. The agency warned that these excuses will no longer be effective, as every company that reaches Australian customers in some way or another must comply with the laws. 

Companies must now hold at least A$10 million ($6.5 million) in net tangible assets, unless their custody role is very small or secondary to another service. The Regulatory Guide 166 also has the same requirements for traditional custodians.

To help companies adopt the new regulatory system easily, the ASIC stated that skilled individuals who have worked in cryptocurrency or blockchain can qualify as responsible managers under the Australian Financial Services (AFS) licence, even if they do not have a traditional finance background.

The company also plans to give “no-action” relief to companies working to get full authorization but have not yet completed the process (as long as they continue to follow strong consumer-protection practices).

Fund managers and exchange-traded product (ETP) issuers must also comply with the strict laws outlined in Chapter 5C of the Corporations Act. They should disclose to investors the assets they hold, where those assets are stored, and the specific risks investors face when purchasing crypto-linked products.

The agency stated that it aims to prevent firms from promoting digital asset investments without disclosing to investors how funds are managed or what risks may arise.

The ASIC also discussed decentralized finance (DeFi), but didn’t provide a single definition because the products are diverse. Instead, the regulator will evaluate each project to determine whether the exchanges or brokers are providing services that require a license. 

The agency will collaborate with other local regulators to develop new laws governing these digital asset companies. Assistant Treasurer Daniel Mulino said these updates will create clear and secure laws that will support innovation instead of blocking new technologies. 

Get $50 free to trade crypto when you sign up to Bybit now