ASIC Tightens Crypto Regulations Amid Market Stagnation in Australia

Australia's financial regulator has updated its guidance to clarify how existing laws apply to digital assets, including cryptocurrencies, stablecoins, and staking services. The Australian Securities and Investments Commission (ASIC) replaced the term 'crypto assets' with 'digital assets' in its revised Info Sheet 225, aligning with upcoming legislation that will introduce licensing requirements for exchanges and custody providers by 2026.

Market sentiment appears cautious as investors await clearer regulatory frameworks. Recent data from Swyftx's annual survey shows flatlining cryptocurrency ownership among Australian adults and declining trust in the sector, despite a year of regulatory reforms.

The Treasury and ASIC are collaborating on two key bills that will establish formal licensing regimes for digital asset platforms and payment service providers. This regulatory push comes as global counterparts intensify oversight of the crypto industry.