Australian Regulator Signals Broader Digital Asset Oversight Ahead of New Licensing Regime

Why It Matters

The move tightens oversight of the crypto sector, forcing firms operating in or targeting Australia to secure licences and meet higher capital standards, and it signals a broader global trend toward formal digital‑asset regulation.

Summary

Australia's securities regulator ASIC said many digital assets already fall under existing financial‑services laws and will require licensing, expanding its guidance from "crypto assets" to "digital assets" with 13 practical examples. The regulator flagged fiat‑backed stablecoins as non‑cash payment facilities and wrapped tokens as derivatives, both subject to Australian Financial Services licences. New custodial rules impose net tangible‑asset thresholds of up to A$10 million (US$6.5 million) unless custody is incidental, and ASIC warned offshore or decentralized platforms that Australian law applies if they target local users. A transitional "no‑action" period will be offered while firms seek the appropriate licences ahead of the Treasury’s pending Digital Asset Platforms and Payment Service Providers bills.