Core Viewpoint - Australia's securities regulator, ASIC, has introduced temporary exemptions for digital asset businesses, facilitating their operations while a comprehensive overhaul of the country's crypto framework is underway [1][2]. Group 1: Exemptions and Regulatory Changes - ASIC has finalized class relief for intermediaries involved in the secondary distribution of certain stablecoins and wrapped tokens, allowing them to operate without separate Australian financial services licenses [2][3]. - The relief extends to custody, permitting providers to hold tokenized financial products in omnibus accounts, a practice previously restricted in the crypto sector [2][4]. - The exemption is contingent upon firms maintaining proper records and reconciliation procedures, as outlined in ASIC's updated digital-asset guidance [3][5]. Group 2: Industry Feedback and Consultation - ASIC's decision follows a consultation process that began on October 29, which included feedback from five non-confidential submissions, with industry groups generally supporting the plan but seeking clearer definitions and broader eligibility [4][6]. - In response to industry feedback, ASIC expanded the scope of the exemptions to include tokens issued by entities that have applied for licenses [4]. Group 3: Transition Period and Future Legislation - ASIC has adopted a sector-wide no-action stance until June 30, 2026, allowing companies time to review the new guidance, submit license applications, or adjust their operations [6]. - The temporary relief is expected to last until mid-2028, by which time the government aims to implement legislation addressing tokenized payments and custody structures [7].

Core Insights - Australia's securities regulator, ASIC, has introduced new licensing and custody exemptions for certain stablecoins and wrapped tokens to promote innovation in the digital assets sector [1][2] - The recent measures build on previous class relief granted in September, allowing stablecoin intermediaries to operate without separate licensing [2][3] Regulatory Changes - ASIC has allowed providers to hold digital assets classified as financial products in omnibus accounts, contingent on proper record-keeping and reconciliation [2] - The updated digital asset guidance (INFO 225) published in October indicated a no-action position until June 30, 2026, for firms seeking licenses [2][3] Industry Feedback - Industry submissions supported the use of omnibus account structures for digital asset custody due to operational efficiencies, although there were calls for clearer record-keeping rules [4] - The guidance specifies that eligible stablecoins must maintain reserves equal to or greater than the total underlying currency amount, with unconditional redemption rights for holders [4] Reporting Requirements - Stablecoin issuers are mandated to publish quarterly reserve reports after four months and annual audited reports after 16 months to confirm reserves are cash or cash equivalents [5] Industry Perspective - The relief measures are seen as positive, although there is a historical divergence in views regarding whether tokens themselves are financial products or securities [6]

Core Insights - Australia's financial regulator, the Australian Securities and Investments Commission (ASIC), has updated its digital-asset guidance to clarify the application of existing financial-services laws to crypto businesses as new legislation is being prepared [1][2] Group 1: Regulatory Updates - The term "digital assets" replaces "crypto-asset" to encompass a wider range of products, including virtual, tokenized, and coin-based offerings [2] - The updated guidance does not create new laws but aims to provide businesses with clarity ahead of upcoming legislation for Digital Asset Platforms and Payment Service Providers [2][3] - ASIC reiterated that many digital assets, such as yield-bearing tokens and staking programs, will likely require an Australian Financial Services license under current law [3] Group 2: Examples and Obligations - The guidance expands from 13 to 18 worked examples, covering various digital assets like exchange-issued tokens, gaming NFTs, and yield-bearing stablecoins [3][4] - New custodial obligations require firms holding client assets to meet net tangible asset thresholds of up to $10 million (approximately US$6.5 million), unless their custody role is deemed incidental [5] Group 3: Offshore and Decentralized Structures - ASIC emphasized that Australian law applies to offshore and decentralized structures marketed or sold to local users, indicating that global platforms cannot evade domestic oversight [5] - The update builds on ASIC's previous decision to grant class relief to intermediaries distributing stablecoins from licensed issuers, allowing distribution without secondary-market or clearing licenses under certain conditions [6]