tl;dr
The Australian Securities and Investments Commission has proposed updates to its regulatory guidance on digital assets, particularly focusing on compliance requirements under the Corporations Act. The revisions include 13 worked examples to clarify when digital assets qualify as financial products, ...
The Australian Securities and Investments Commission (ASIC) has proposed updates to its regulatory guidance on digital assets, particularly focusing on compliance requirements under the Corporations Act. The revisions include 13 worked examples to clarify when digital assets qualify as financial products, covering stablecoins, wrapped tokens, and staking services. ASIC is offering temporary relief from penalties for businesses seeking licensing, with a consultation period for feedback on the proposed regulations ending in February 2025.
The revisions to Information Sheet 225 (INFO 225) include 13 worked examples designed to clarify when digital assets qualify as financial products, such as stablecoins, wrapped tokens, and staking services. Among the examples, ASIC outlines scenarios involving exchange tokens, yield-bearing stablecoins, and tokenized assets like concert tickets. The draft guidance suggests that classification depends on "the rights, benefits, expectations, and product features inherent to, and offered together with the token."
ASIC is also considering further examples for wrapped tokens and stablecoins, acknowledging their complex regulatory implications. BTC Markets CEO Caroline Bowler welcomed the updates, describing the approach as collaborative and necessary to foster innovation. Bowler expressed concerns about potential impact on access to key tools and industry delays.
Australia's efforts to regulate digital assets have encountered delays due to evolving policy approaches and industry concerns. Feedback on the paper, including its potential compliance costs and impact on competition, is due by February 28, 2025, with updated guidance expected by mid-2025.