- ASIC grants class relief to stablecoin distributors, easing licensing requirements until 2028.
- Product Disclosure Statements must be provided to retail clients under ASIC’s relief.
- Catena Digital’s AUDM stablecoin is the first issuer under ASIC’s new licensing relief.
Australia’s financial regulator, ASIC, has granted class relief to intermediaries distributing stablecoins. The exemption, effective until June 2028, allows them to operate without additional licensing requirements.. This move aims to streamline stablecoin distribution while maintaining consumer protections.
The relief comes after extensive consultations with industry participants, following concerns about high compliance costs that hindered stablecoin distribution. ASIC’s decision addresses these issues and removes barriers for intermediaries. Without this relief, stablecoin distribution in Australia would have been commercially unfeasible for many operators.
Catena Digital Leads ASIC’s Stablecoin Issuer Relief Scheme
Catena Digital Pty Ltd is the first issuer under the scheme, issuing the AUDM stablecoin. ASIC plans to extend this relief to other licensed stablecoin issuers. This shows Australia’s commitment to growing stablecoin infrastructure while balancing innovation and regulatory oversight.
Intermediaries who are eligible for the relief also continue to be required to give Product Disclosure Statements (PDS) to retail clients. This prerequisite is an element of accountability and transparency. By monitoring these practices, ASIC makes sure that investors are armed with what they need to know. It also smooths operational friction for crypto businesses.
The decision comes after a revision in guidance last December. These updates specified that certain stablecoins are considered financial products. “Stablecoin issuers and distributors are key in addressing this need.” ASIC’s decision clears regulatory barriers that would have hindered stablecoin adoption in Australia.
Under the new plan, distributors wouldn’t have to comply with three of the most significant license requirements. These activities are the operation of markets, clearing and settlement facilities, and the provision of financial services. These exceptions would apply to the stablecoins now classified as financial products. It makes it easier to do business and stay in compliance.
Balancing Stablecoin Relief with Crypto Enforcement
ASIC’s ruling is part of a larger crackdown by the Australian government, aiming to promote financial technology innovation while providing oversight. Through enabling more efficient distribution of stablecoins, ASIC is increasing market dynamism and competitiveness.
But the respite is being granted during a period of aggressive enforcement against non-compliant crypto operators. Recently, ASIC has closed down 95 companies connected to foreign “pig butchering” scams, wherein victims lost a combined $35.8 million from almost 1,500 claims.
The regulator closed about 130 scam sites per week, and more than 10,000 malicious portals have also been closed, including some 7,200 bogus investment sites and around 1,500 phishing” operatives. These are types of actions that protect investors and keep our markets fair and honest.
Crypto ATM operators have also been in the firing line of ASIC. They lacked anti-money laundering (AML) safeguards at a time of increased suspicious activity. In the interim, AUSTRAC has ordered Binance Australia to engage external auditors. This comes in the wake of issues related to its AML and counter-terrorism financing (CTF) controls.
Related: Australia’s Superannuation Turns Into a Test Case for Crypto Adoption
Around the world, regulators are closing in on cryptocurrency-related crimes. European regulators are weighing penalties for OKX after $100 million was laundered via its platform by hackers. Binance is currently under investigation by French prosecutors for money laundering related to drug trafficking and tax evasion within the EU.
In Australia, officials have contacted 427 suspended digital currency exchanges. They cautioned that companies that do not opt out voluntarily could be struck off. A lot of those platforms have gone out of service, and are still listed, which is currently creating vulnerabilities for exploitation by miscreants.
These enforcement actions highlight the need for strong regulatory frameworks in crypto. ASIC combines regulatory relief with active fraud prevention. This ensures a stable environment for stablecoin distribution and the broader digital asset market.
