ASIC Introduces Significant Stablecoin Relief and Omnibus Rights

ASIC Introduces Significant Stablecoin Relief and Omnibus Rights—With Conditions

Australia's securities regulator, ASIC, has unveiled a range of exemptions to facilitate the growth of digital asset businesses. However, this temporary relief is contingent on wider changes to the country's cryptocurrency regulations. The initiative allows specific stablecoins and wrapped tokens to be traded more easily while keeping investor protection in focus.

Key Takeaways

ASIC has introduced class relief to ease the operations for businesses dealing with certain stablecoins and wrapped tokens.
Exemptions allow exchanges to function without separate financial licenses as long as they manage eligible products.
Custody relief permits tokenized financial products to be held in omnibus accounts under specific conditions.
A temporary no-action stance is in effect until June 30, 2026, giving businesses time to adjust to new regulations.
The Australian digital asset market is expanding rapidly, with a significant rise in cryptocurrency adoption and interest from established exchanges.

New Regulations to Support Digital Asset Operations

The Australian Securities and Investments Commission (ASIC) has recently rolled out a comprehensive set of exemptions aimed at simplifying the operation of digital asset businesses, while clarifying that this relief is temporary and connected to a broader update of the country's cryptocurrency framework.

On Tuesday, ASIC finalized class relief for intermediaries managing the secondary distribution of specific stablecoins and wrapped tokens. This decision enables exchanges and other service providers to operate without requiring separate Australian financial services, market, or clearing licenses for eligible products.

ASIC stated that this initiative is designed to foster innovation as the government develops a permanent regulatory framework for digital asset platforms and payment systems.

Omnibus Custody Relief Confirmed

The relief extends to custody, allowing providers to hold tokenized financial products in omnibus accounts—a structure common in traditional finance but previously limited in the crypto space.

ASIC emphasized that the exemption will only apply if companies maintain appropriate records and reconciliation procedures. In October, the regulator initially signaled this shift when it published an update to its key digital asset guidance, INFO 225.

Tuesday’s announcement concludes a consultation process that began on October 29, when ASIC issued Simple Consultation 32 to outline proposed exemptions for stablecoins and wrapped assets.

The regulator received five non-confidential submissions. Industry groups generally supported the plan, requesting clearer definitions and broader eligibility criteria. In response, ASIC expanded the scope to encompass tokens issued by entities applying for licenses.

These recent changes are part of a larger framework which ASIC has been developing throughout the year.

The recently updated INFO 225 guidance reaffirmed ASIC's long-standing position that numerous stablecoins, wrapped tokens, tokenized securities, and digital asset wallets fall under existing financial product regulations.

Temporary Relief for Stablecoin Issuers under ASIC’s Transition Plan

This framework means that many service providers need to hold Australian Financial Services (AFS) licenses and comply with current investor protection laws. To assist in this transition, ASIC has implemented a sector-wide no-action stance until June 30, 2026.

This timeline will provide companies with the opportunity to familiarize themselves with the new guidance, submit license applications, or alter their operations accordingly.

The temporary relief is expected to last until mid-2028, when the government aims to replace it with new legislation governing tokenized payments and custody arrangements.

ASIC has mentioned the possibility of adding more issuers, particularly since some businesses indicated that existing licensing challenges jeopardized the feasibility of launching Australian-regulated stablecoins.

Despite these changes, intermediaries must continue to provide retail investors with Product Disclosure Statements, a requirement ASIC believes balances regulatory flexibility with necessary consumer protections.

Regulators Push for Modernization in Digital Asset Oversight

These exemptions come at a crucial time, as policymakers have expressed concerns that Australia may fall behind its global counterparts. ASIC Chair Joe Longo warned last month that tokenization is transforming capital markets and urged the nation to evolve quickly or risk missing out on vital opportunities.

Proposals released by the government in September suggested that exchanges should obtain AFS licenses, with potential penalties of up to 10% of annual turnover for any violations. Smaller platforms satisfying specific low-threshold criteria would be exempt from these requirements.

The drive for heightened supervision has not halted enforcement actions. In October, ASIC secured a temporary travel ban against Blockchain Global director Ryan Xu amid investigations into the ACX Exchange's collapse, leaving creditors owed over A$58 million.

The case is ongoing in the Federal Court.

Australia’s digital asset sector is experiencing rapid growth, with cryptocurrency adoption increasing to 31% in 2025. Self-managed superannuation funds have significantly raised their crypto exposure, increasing sevenfold since 2021 to reach A$1.7 billion.

Major exchanges are now targeting this expanding market, with Coinbase planning to launch a dedicated service for retirement accounts.