Australia Clears Path for Stablecoins: What This Means for Cryptocurrency Circulation
The Australian Securities and Investments Commission (ASIC) has made a significant stride towards structured stablecoin regulation in Australia, announcing class relief for intermediaries distributing stablecoins from an Australian Financial Services (AFS) licensed issuer. This relief, set to be published in the coming weeks in ASIC's updated guidance, INFO 225, will offer practical examples of how crypto assets such as stablecoins, meme coins, and wrapped tokens fit under current financial laws. The move is expected to boost innovation in the crypto sector while keeping consumer protections intact, providing crypto firms room to grow. The relief removes the need for separate Australian Financial Services (AFS), market, or clearing licences for intermediaries handling licensed stablecoins. Intermediaries are required to share the product disclosure statement with clients whenever the issuer provides one. The ASIC's actions are part of a major step towards structured stablecoin regulation in Australia and align with the broader effort to modernize payment systems. The latest relief builds on that momentum by reducing red tape for stablecoin distributors. ASIC has been working with the Treasury on the government's digital assets reform plan, including a stablecoin framework consulted on in 2023. Earlier this year, ASIC supported Project Acacia, allowing live tests of tokenized asset transactions and digital money. The regulator's approach aims to streamline market access without weakening regulatory oversight, supporting responsible growth of digital assets while keeping safeguards in place. ASIC will extend regulatory relief for intermediaries involved in stablecoin issuance in the near future once additional stablecoin issuers obtain an Australian Financial Services (AFS) license. The regulator is considering extending this relief to more intermediaries as additional stablecoin issuers secure AFS licences. The updated guidance is designed to help issuers, exchanges, and intermediaries understand licensing requirements before offering products to the public. The ASIC's December 2024 consultation paper, CP 381, sought feedback on how crypto products should be treated under financial law. The latest relief aligns with the broader effort to modernize payment systems, marking a significant step forward in the regulation of digital assets in Australia.
Read also:
- MRI Scans in Epilepsy Diagnosis: Function and Revealed Findings
- Hematology specialist and anemia treatment: The role of a hematologist in managing anemia conditions
- Enhancing the framework or setup for efficient operation and growth
- Hydroelectric Power Generation Industry Forecasted to Expand to USD 413.3 Billion by 2034, Projected Growth Rate of 5.8% Compound Annual Growth Rate (CAGR)
