In brief
- ASIC has granted class relief for intermediaries distributing stablecoins issued under an AFS licence.
- An expert told Decrypt this “helps bridge regulatory friction while Treasury finalises its proposed stablecoin regime.”
- ASIC noted the relief could be extended to additional issuers as more look to secure AFS licences.
The Australian Securities and Investments Commission has granted regulatory relief to stablecoin intermediaries, exempting them from holding separate financial services licences when distributing crypto issued by licensed Australian providers, with an expert calling the regulator “pragmatic.”
The first-of-its-kind class relief announced Thursday allows intermediaries to distribute stablecoins from Australian Financial Services licensed issuers without requiring separate AFS, market, or clearing facility licences.
“ASIC has today announced an important step in facilitating growth and innovation in the digital assets and payments sectors,” the regulator said in its statement.
The relief takes effect once registered in federal legislation and represents Australia’s first major step toward resolving regulatory uncertainty that has plagued the stablecoin market.
Steve Vallas, CEO of Blockchain APAC, told Decrypt that the approach “fits within financial services law as a temporary transitional measure ahead of broader stablecoin reforms.”
“The relief doesn’t change whether some stablecoins are financial products,” he added, but rather “suspends secondary licensing layers for distributors where the issuer already holds an AFS licence.”
ASIC’s December consultation on digital assets guidance had signaled that some stablecoin issuers require licensing under current definitions, creating compliance complexity for intermediaries.
Thursday’s relief addresses this by allowing distribution through licensed pathways while maintaining issuer responsibilities.
“The market is moving and ASIC is being pragmatic,” Vallas explained. “This decision helps bridge regulatory friction while Treasury finalises its proposed stablecoin regime.”
The exemption requires intermediaries to make licensed issuers’ product disclosure statements available to clients, ensuring transparency remains intact.
‘Demand-led’
Vallas noted the relief “doesn’t shift liability” as “issuers remain responsible for disclosure and prudential obligations.”
“The market is moving and ASIC is being pragmatic,” Vallas explained. “This decision helps bridge regulatory friction while the Treasury finalises its proposed stablecoin regime.”
When asked about market demand and competitive implications, Vallas said, “The key question is whether the market wants or needs an Australian dollar stablecoin.”
“Success will be ‘demand-led,’” he added, and the “interest from global players in meeting Australian regulatory requirements directly or through partnerships will provide clues.”
ASIC also indicated it will consider extending relief to additional licensed stablecoin issuers as they emerge, suggesting the framework could expand significantly as Australia’s digital asset sector matures.
This comes as ASIC finalizes updates to its digital assets guidance (INFO 225), expected to be published in the coming weeks, alongside key themes and public submissions received in response to its December consultation.
ASIC is also working closely with the Treasury, according to the statement, as it implements the government’s digital assets reforms, including a framework for payment stablecoins consulted on in 2023.
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