The Temporary Regulatory Relief for Stablecoin Intermediaries by ASIC

The Australian Securities and Investments Commission (ASIC) has recently made a significant move to provide regulatory relief for stablecoin intermediaries, marking a pivotal moment in the country's approach to digital asset regulation. This temporary exemption allows intermediaries to distribute stablecoins from firms that already possess an Australian Financial Services License (AFSL) without the necessity to secure separate licenses themselves.

 

The relief targets the secondary distribution of stablecoins and is set to commence upon registration on the Federal Register of Legislation. This initiative by ASIC is Australia's first formal stride toward relaxing stringent licensing requirements within the burgeoning digital assets sector. It seeks to enable intermediaries to more efficiently navigate regulatory landscapes while the government structures permanent laws for stablecoins.

 

Background and Context

Earlier this year, as reported by Cryptopolitan, the Australian government introduced amendments to its legal framework governing digital assets. The aim was to bolster marketplace stability and enhance consumer protection. These rules were designed to differentiate between varying sizes and types of businesses, exempting smaller entities and those outside financial services from stringent requirements, while ensuring that larger cryptocurrency trading platforms would need to secure an AFSL.

 

The Corporations (Stablecoin Distribution Exemption) Instrument 2025/631

ASIC’s introduction of the Corporations (Stablecoin Distribution Exemption) Instrument 2025/631 represents a landmark policy easing surrounding stablecoin exchanges. Previously, exchanges, brokers, and stablecoin platforms faced cumbersome and expensive processes to acquire an AFSL, along with market or clearing and settlement licenses, even for specific stablecoins issued by already licensed companies. This exemption eliminates the need for separate licenses, provided the stablecoin issuer already maintains an AFSL.

 

Catena Digital's AUDM is notably the inaugural token benefitting from this exemption, providing intermediaries the ability to distribute it without needing separate licenses. However, ASIC still mandates that intermediaries furnish crucial information to clients, such as the product disclosure statement (PDS) for AUDM, detailing the stablecoin’s functionality and associated risks.

 

Balancing Innovation and Consumer Protection

ASIC clarified that the exemption does not modify the legal status of stablecoins. Instead, it seeks to offer companies the capacity to enhance stablecoin services while safeguarding consumers. The process of obtaining licenses is now more streamlined and efficient, although ASIC maintains rigorous oversight during implementation.

 

As the first of its nature in Australia, this exemption highlights ASIC's intention to foster innovation without compromising consumer safety. The statutory body is optimistic about extending this relief to other stablecoins, contingent on issuers applying for and securing an AFSL. This would also permit intermediaries to access a broader array of stablecoins, thus alleviating current pressures while the Australian Treasury devises a comprehensive and enduring policy framework for stablecoins.

 

Industry and Regulatory Impacts

Steve Vallas, CEO of Blockchain APAC, lauds ASIC's exemption as a practical step that alleviates intermediary burdens when engaging with stablecoins. He emphasized that this aligns with Australia’s financial services landscape, but recognized that it should serve as an interim measure as the Treasury develops lasting solutions.

 

This decision is an extension of ASIC's year-long efforts to clarify how existing financial laws pertain to digital assets. In December 2024, ASIC released a consultation paper, CP 381, as part of its revisions to the guidance document known as INFO 225. This paper solicited public feedback on how to categorize various digital tokens, including stablecoins and other crypto-assets, within the financial product spectrum, illustrating ASIC’s dedication to creating a robust, adaptable framework for this rapidly evolving sector.