tl;dr
In October 2025, Australia's ASIC updated its digital asset guidance, replacing 'crypto-asset' with 'digital assets' to align with evolving industry standards. The revisions, part of preparations for upcoming legislation, clarify licensing requirements for exchanges, stablecoin issuers, and custodia...
**Australia’s ASIC Updates Digital Asset Guidance as New Legislation Looms**
Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC), has released a significant update to its digital-asset guidance, signaling a pivotal step in shaping the regulatory landscape for cryptocurrency and tokenized assets. The revised *Info Sheet 225* replaces outdated terminology like “crypto-asset” with the broader term “digital assets,” ensuring coverage of virtual, tokenized, and coin-based products. This move reflects the evolving nature of the industry and aims to provide clarity as the government prepares sweeping new legislation.
### Expanding Legal Clarity for Digital Assets
The updated guidance clarifies when digital assets and services fall under existing financial-services laws, particularly the *Corporations Act*. While the rules do not create new laws, they aim to offer businesses greater certainty ahead of Treasury’s upcoming *Digital Asset Platforms and Payment Service Providers* bills. These bills are expected to introduce formal licensing requirements for exchanges, custody platforms, and certain stablecoin issuers.
ASIC emphasized that many digital assets—such as yield-bearing tokens, staking programs, and asset-referenced stablecoins—likely require an Australian Financial Services (AFS) license under current law. The guidance also reinforces that Australian regulations apply to offshore and decentralized platforms if they market or sell services to local users, rejecting the notion that geography can shield entities from oversight.
### Key Updates and Worked Examples
The revised guidance expands from 13 to 18 worked examples, incorporating new sections on custody, fund management, and transitional relief. Scenarios now include exchange-issued tokens, gaming NFTs, yield-bearing stablecoins, wrapped tokens, and staking-as-a-service platforms. ASIC evaluates whether these assets qualify as managed investment schemes, derivatives, or non-cash payment facilities based on their rights and benefits.
Custodial obligations have also been strengthened, requiring firms holding client assets to meet net tangible asset thresholds of up to $10 million (US$6.5 million), unless their custody role is deemed incidental. This aligns with ASIC’s September 2024 decision to grant class relief for intermediaries distributing stablecoins from licensed issuers, a temporary measure while Treasury finalizes its stablecoin regime.
### Preparing for the Future of Digital Assets
The update arrives as the Labor government advances legislation to establish a formal licensing regime for digital asset platforms later this year. ASIC stated its framework will evolve alongside these reforms, but businesses must already prepare for existing obligations.
A spokesperson for Australian crypto exchange Swyftx highlighted the importance of balancing innovation with consumer protection: “Australia aims to lead in digital assets, but we must ensure local consumers and businesses aren’t sidelined by offshore providers.”
Transitional measures include allowing experienced crypto professionals to qualify as responsible managers under AFS license requirements and potential no-action relief for firms seeking authorization. Additionally, guidance for fund managers and exchange-traded product issuers outlines expectations for custody, risk management, and disclosure under Chapter 5C of the *Corporations Act*.
### Navigating DeFi and Interagency Collaboration
ASIC stopped short of defining “true DeFi,” stating that licensing requirements for decentralized finance (DeFi) arrangements will depend on individual facts and roles. The regulator also acknowledged overlap with other agencies, including AUSTRAC, APRA, the ATO, and the Reserve Bank of Australia, underscoring a collaborative approach within Australia’s broader regulatory network.
As the digital asset landscape continues to mature, ASIC’s updated guidance and forthcoming legislation aim to foster innovation while safeguarding market integrity. For businesses, the message is clear: adapt to evolving standards and prepare for a regulatory environment that prioritizes both accountability and growth.