Australia’s ASIC Grants Relief for Stablecoin Intermediaries, Eases AFS License Requirements
The Australian Securities and Investments Commission (ASIC) granted class aid for intermediaries distributing stablecoin issued by licensed Australian Financial Services (AFS) suppliers, exempting them from separate licensing necessities till June 2028.
According to the press release, the first-of-its-kind aid permits distributors to function with out an Australian market, clearing and settlement facility, or extra AFS licenses when dealing with stablecoins from licensed issuers.
Australia Moving Towards Stablecoin Adoption
ASIC’s instrument particularly names Catena Digital Pty Ltd because the preliminary certified issuer for its AUDM stablecoin, with plans to increase aid to extra licensed stablecoin issuers.
The aid requires intermediaries to supply Product Disclosure Statements to retail shoppers and takes impact as soon as registered on the Federal Register of Legislation.
The regulatory framework emerges from in depth session following December 2024 guidance updates that clarified some stablecoins qualify as monetary merchandise beneath present regulation.
Multiple submissions highlighted compliance prices related to licensing necessities, with stablecoin issuers indicating distribution wouldn’t be commercially viable with out middleman aid.
ASIC positioned the non permanent aid as bridging regulatory gaps till the federal government’s broader digital asset reforms start, supporting accountable innovation whereas sustaining shopper protections by way of licensed issuer necessities.
Regulatory Relief Addresses Commercial Viability Concerns
The exemption responds on to business suggestions, warning that stablecoin distribution confronted important obstacles beneath present licensing regimes.
Consultation Paper 381 revealed widespread considerations about compliance prices and regulatory burden for secondary distributors working beneath present monetary companies legal guidelines.
Several respondents urged deferring stablecoin regulation till the federal government’s proposed fee companies and digital asset platform reforms take impact.
ASIC consulted straight with stablecoin issuers and nominated distributors, who confirmed that distribution operations would lack business viability with out licensing aid for intermediaries.
The instrument exempts distributors from three key licensing necessities when working monetary markets, clearing and settlement amenities, or offering monetary companies solely as a result of stablecoins qualify as monetary merchandise.
Services lined embrace basic recommendation, dealing, market making, and custodial or depository companies for named stablecoins.
According to the Explanatory Statement, the aid extends till June 1, 2028, offering business certainty in the course of the transition to proposed authorities reforms.
ASIC emphasised that the non permanent nature aligns with the timeline for implementing complete digital asset laws at present beneath growth.
Distributors should take cheap steps to supply present Product Disclosure Statements to retail shoppers as the only situation for accessing aid.
The requirement maintains shopper safety requirements whereas decreasing operational obstacles for official stablecoin distribution networks.
Broader Enforcement Campaign Targets Crypto Compliance Failures
The stablecoin aid comes as ASIC is aggressively implementing regulatory actions in opposition to non-compliant crypto operators throughout Australia.
According to an April report, authorities shut down 95 companies linked to worldwide “pig butchering” schemes after receiving practically 1,500 sufferer claims totaling $35.8 million in reported losses.
ASIC continues dismantling a median of 130 rip-off web sites weekly, having disabled over 10,000 malicious platforms, together with 7,200 pretend funding websites and 1,500 phishing operations.
The regulator just lately focused crypto ATM operators failing to satisfy anti-money laundering necessities following suspicious exercise spikes.
@binance faces obligatory audit in Australia over severe AML and terror financing considerations amid nationwide enforcement marketing campaign.#Binance #Australiahttps://t.co/lVsofJm6gC
— Cryptonews.com (@cryptonews) August 22, 2025
Most just lately, AUSTRAC directed Binance Australia to nominate exterior auditors after figuring out “severe considerations” with anti-money laundering and counter-terrorism financing controls.
The obligatory audit requirement stems from compliance points, together with restricted impartial evaluate scope, high workers turnover, and inadequate native administration oversight.
The enforcement sample on exchanges extends internationally, with European regulators contemplating penalties against OKX after hackers allegedly laundered $100 million in stolen funds by way of its platform.
French prosecutors additionally examine Binance for alleged cash laundering violations linked to drug trafficking and tax fraud throughout the European Union.
Back in Australia, the authorities contacted 427 registered digital currency exchange providers that appear inactive, warning of potential deregistration for companies failing to withdraw voluntarily.
Many registered platforms ceased operations however stay listed, creating vulnerabilities that criminals may exploit for legitimacy.
As a results of the continued enforcement sweeping, the regulators have uncovered refined cash laundering operations exploiting crypto platforms to transform illicit funds.
Queensland authorities just lately charged 4 individuals over an alleged scheme moving $190 million by way of official companies earlier than crypto conversion, restraining $21 million in belongings throughout 17 properties.
Giving this rising “unlawful operation,” AUSTRAC plans to launch a publicly searchable register enabling shoppers to confirm official crypto alternate registration standing and regulatory oversight.
The initiative goals to deal with legal exploitation of official registrations for fraudulent platform operations focusing on unsuspecting traders.
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