The Australian Regulator, ASIC has proposed updates to its crypto-asset guidelines, INFO 225, to reflect the evolving digital asset market. The consultation includes examples clarifying how financial product rules apply, aiming for a well-regulated system benefiting all.
A consultation paper has been published by ASIC, which suggests modifications to Information Sheet (INFO) 225 regarding crypto-assets.
The regulator stated that the evolving digital asset market requires the revision of INFO 225, which provides guidance to those who provide crypto-asset products and services.
ASIC has provided 13 examples that illustrate the application of current financial product definitions to digital assets and related products. ASIC Commissioner Alan Kirkland stated that the objective is to establish a financial system that is well-regulated and beneficial to all parties.
“We want to promote the growth of responsible financial innovation while ensuring consumer protection. A well-regulated financial system benefits everyone in the community as it supports consumer confidence, and market integrity and facilitates competition and innovation,” Kirkland said.
The consultation paper was released by the regulator in response to industry requests for increased clarity, according to the ASIC Commissioner. The updated INFO 225 is scheduled for release in the second quarter of 2025, with the consultation process expected to conclude at 5 p.m. on Feb. 28, 2025.
The regulator is seeking public input on a variety of issues, such as the application of existing Australian Financial Services (AFS) license protocols, ASIC guidance, and standard conditions for digital asset businesses. Additionally, the regulator is seeking input on “practical licensing issues” related to stablecoins and wrapped tokens.
Additionally, the consultation process will evaluate potential regulatory relief and potential issues that may arise from the Australian government’s proposed digital asset platform and payment stablecoin regimes.
The Australian regulator is encouraging stakeholders to adopt a “no-action” stance toward digital asset businesses that are in the process of obtaining or modifying an AFS license, Australian Markets License, or Clearing and Settlement Facility license.
The regulator has stated that it will persist in the use of “its full range of regulatory and enforcement tools to protect consumers and uphold market integrity in the digital asset sector.”
