ASIC exempts licensed stablecoin distributors from AFS licenses, reducing compliance costs by 70% and facilitating the development of the Australian digital asset market by 2028.
The Australian Securities and Investments Commission (ASIC) has made a significant step forward in modernizing the regulatory framework for the digital asset market by issuing a licensing exemption for stablecoin distribution intermediaries. The decision, published through the ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631, marks a positive shift in the agency’s regulatory approach to cryptoassets.
Under the new regulations, intermediaries involved in the distribution of stablecoins issued by institutions with Australian financial services (AFS) licenses will no longer be required to hold a separate AFS license, market license, or clearing and settlement facility license. This will significantly reduce the compliance burden for businesses in the industry, while maintaining a level of consumer protection by requiring stablecoins to be issued under a supervised AFS license.
ASIC stressed its commitment to supporting responsible innovation in the rapidly evolving digital asset space. The agency said the exemption only applies to stablecoins classified as financial products under the current Corporations Act and issued by entities with valid AFS licenses, ensuring transparency and market safety.
Scope of application and expansion prospects
Currently, the exemption only applies to Catena Digital Pty, the issuer of the AUDM stablecoin, but ASIC has committed to expanding the scope as more AFS-licensed stablecoin issuers are added. This sets a positive precedent for the development of the stablecoin ecosystem in Australia, encouraging businesses to invest in this sector.
The exemption covers a number of key financial services related to the secondary distribution of stablecoins, including general advisory services, market making, stablecoin trading, and custody services. However, stablecoin issuance remains exempt, ensuring tight control at the most critical stage of the value chain .
This decision follows extensive public consultation, during which industry stakeholders highlighted the high compliance costs under the current licensing regime. ASIC acknowledges these challenges and sees the exemption as a stopgap solution until comprehensive reforms are implemented, in particular the proposed licensing framework for payment stablecoins.
The exemption is temporary and will expire on June 1, 2028, unless repealed earlier. This period allows the market to adapt and develop while ASIC finalizes the long-term regulatory framework for digital assets.
Despite significant regulatory progress, crypto users in Australia still face barriers from banking. A new Binance survey of 1,900 respondents found that 58% want easy and unlimited deposits, while 22% have had to switch banks to gain better access to crypto assets.
These hurdles persist despite significant regulatory progress, including Anti-Money Laundering (AML) rules for exchanges since 2018 and the launch of Bitcoin and Ether spot ETFs in 2024.
