Australia Eases Rules for Stablecoins and Wrapped Tokens
- ASIC expands relief allowing stablecoin and wrapped token distribution without licences.
- Updated rules add custody flexibility through omnibus accounts with strict oversight.
- Exemptions support industry continuity as Australia prepares long-term digital asset laws.
Australia’s securities regulator has introduced a new phase of exemptions that will influence how firms handle stablecoins and wrapped tokens. The Australian Securities and Investments Commission confirmed the measures this week, stating that intermediaries can distribute eligible stablecoins and wrapped tokens without securing additional Australian Financial Services licences.
The relief also covers market and clearing licences, reducing costs for service providers operating in Australia’s expanding digital asset sector. ASIC described the changes as part of its broader plan to support innovation while the country transitions toward a full legislative framework for digital asset platforms.
ASIC Expands Licensing Relief
The new exemption framework builds on earlier relief issued in September, yet it now covers a wider class of stablecoins and wrapped tokens. ASIC said the updated rules allow intermediaries to engage in secondary distribution without holding separate AFS, market, or clearing and settlement facility licences. The agency noted that this approach responds to industry concerns about operating burdens during Australia’s regulatory overhaul.
To rely on the relief, however, distributors must meet specific conditions. They must provide Product Disclosure Statements to retail clients when issuers have prepared them for eligible stablecoins or wrapped tokens.
The regulator also introduced targeted relief for issuers, notably by removing transaction reporting obligations when issuers are not parties to the transactions. ASIC stated that wrapped token distributors also gained relief from preparing disclosure documents when considered issuers under section 761E(5) of the Corporations Act.
The eligibility criteria require stablecoins to hold reserves equal to or greater than the underlying currency amount. Wrapped tokens must maintain equivalent reserves of underlying digital assets. ASIC confirmed that issuers must publish quarterly reserve reports after four months and annual audited reports after sixteen months.
New Custody Flexibility Introduced
The relief package goes beyond licensing rules. ASIC also approved omnibus account structures for custody of digital assets that meet financial product definitions. The measures are within the ASIC Corporations (Amendment) Instrument 2025/871, which updates earlier custody standards to include crypto within exceptions for pooled account arrangements.
Providers must maintain appropriate reconciliation procedures and detailed record-keeping to rely on this relief. Industry submissions strongly supported omnibus structures during ASIC’s consultation period.
According to ASIC’s summary, respondents noted efficiency in speed and cost, alongside operational familiarity from traditional custody models. However, they also asked for clearer record-keeping rules. ASIC chose to maintain a principles-based approach, explaining that flexibility helps diverse custodial systems adapt to the rapidly changing digital asset environment.
The regulator added a definition of “digital asset” under changes to subsection 912AAC, ensuring that the amended standards apply consistently across custodial processes. The custody relief aligns with ASIC’s current approach under its no-action position, which remains active until June 30, 2026.
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Consultation, Feedback, and Final Adjustments
The updated exemptions followed ASIC’s consultation process, which began in October alongside the publication of its revised digital asset guidance, INFO 225. That guidance clarified how existing financial services laws apply to digital assets and outlined the temporary no-action period. ASIC received five non-confidential submissions. According to the regulator, respondents supported broader eligibility definitions and transitional recognition for issuers applying for licences.
ASIC incorporated these suggestions by allowing intermediaries to rely on the relief even when issuers are still progressing through licensing applications. The agency also issued additional explanatory material to clarify how wrapped tokens and stablecoins fit into the final framework. This approach supports continuity while Australia prepares for the government’s digital asset legislation.
The exemptions sit alongside the Treasury’s broader regulatory reforms, which classify digital asset platforms and tokenized custody services as financial products. ASIC confirmed that stablecoins, wrapped tokens, tokenized securities, and digital asset wallets already fall under this definition. The current relief offers operational space until the permanent regime takes effect.
ASIC said the current instruments will automatically repeal on January 1, 2029, giving the industry time to transition to the government’s full regulatory architecture. The regulator also indicated that additional stablecoin and wrapped token issuers may qualify as they secure licences, which could expand the scope of eligible products during the transition period.
Meanwhile, ASIC’s final relief measures indicate a coordinated effort to streamline digital asset distribution and custody during Australia’s regulatory transition. The exemptions allow firms to maintain operations while meeting clear conditions for disclosure, reporting, and record-keeping. The combined framework creates structured pathways for stablecoins, wrapped tokens, and custodial services as they move toward full licensing requirements.
