ASIC Eases Stablecoin Rules to Boost Crypto Innovation in Australia

The Australian Securities and Investments Commission (ASIC) announced on Tuesday that it is “granting class relief” for entities involved in the secondary distribution of specific stablecoins and wrapped tokens. This class relief effectively creates a broad exemption, removing the need for these intermediaries to obtain a full financial services license for these activities. The core of the reform lies in this deregulatory step, which directly targets the administrative and cost burdens that have historically hindered business participation in the digital asset ecosystem.

Concurrently, ASIC has approved the use of omnibus accounts in this context. An omnibus account allows an intermediary to hold assets for multiple clients within a single, pooled account at a custodian, rather than maintaining individual accounts for each client. This operational change is designed to streamline back-office processes, reduce complexity, and lower overheads for businesses distributing these digital tokens. Together, the licensing exemption and the omnibus account approval form a twin-pronged approach to reduce friction and cost.

The regulatory adjustments are specifically tailored to the secondary distribution of stablecoins and wrapped tokens, two pivotal instruments in the digital asset landscape. Stablecoins, which are cryptocurrencies pegged to stable assets like the Australian dollar or US dollar, are increasingly viewed as critical infrastructure for payments and settlements. Wrapped tokens are digital representations of other assets, like Bitcoin or Ethereum, that exist on different blockchain networks, enabling broader interoperability and use in decentralized finance (DeFi) applications.

By focusing on secondary distribution—the trading and transferring of these tokens after their initial issuance—ASIC is targeting the most active layer of the market. This move acknowledges that excessive regulation at this exchange and brokerage level can stifle liquidity and innovation. The decision signals ASIC’s intent to nurture a mature market environment where these specific digital assets can circulate more freely, supporting their utility in payments, remittances, and complex financial products without compromising overarching regulatory oversight.

This regulatory easing is not an isolated event but a calculated component of Australia’s broader strategy to become a more attractive hub for digital asset innovation. By reducing compliance costs and operational hurdles, ASIC aims to lower barriers to entry for both domestic startups and international firms considering a base in Australia. The regulator explicitly stated the measures are “aimed at fostering innovation and growth in the digital assets and payment sectors,” aligning with global trends where jurisdictions are competing to establish clear, supportive crypto frameworks.

The positive sentiment surrounding this announcement reflects a growing consensus that proportionate regulation can stimulate rather than suppress technological advancement. For traditional finance (TradFi) institutions exploring digital asset services, these clearer rules provide a more navigable pathway. The ultimate goal is to encourage responsible development, increase market participation, and ensure Australia remains competitive in the fast-evolving global landscape of digital payments and asset management. This step by ASIC represents a significant shift from a stance of cautious observation to one of active facilitation.