Australia Expands Regulatory Oversight to Stablecoins and Wrapped Tokens
Australia's financial regulator, the Australian Securities and Investments Commission (ASIC), has classified stablecoins, wrapped tokens, tokenized securities, and digital wallets as financial products. This MOVE mandates that companies offering these services must obtain an Australian Financial Services (AFS) license to operate legally.
ASIC Commissioner Alan Kirkland emphasized the necessity of compliance, stating that many digital assets already fall under existing financial product laws. "Proper licensing safeguards consumers and enables regulatory action against malpractice," he said. The announcement aligns with broader government efforts to reform crypto legislation.
A transitional relief period until June 30, 2026, provides firms with time to assess their offerings and secure licenses. Temporary exemptions will also apply to stablecoin providers and custodians ahead of forthcoming Treasury regulations.
