ASIC Eases Licensing Rules for Stablecoin Distributors in Australia
By: Eliza Bennet
The Australian Securities and Investments Commission (ASIC) has recently introduced significant regulatory changes, aiming to simplify the licensing process for stablecoin distribution intermediaries in Australia. In a move that marks a progressive step towards facilitating digital asset innovation, ASIC has granted licensing exemptions to intermediaries that distribute stablecoins issued by Australian Financial Services (AFS) license holders. This development aims at fostering innovation while ensuring strong consumer protection standards.
Under the new 'ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631', intermediaries involved in the distribution of AFS-licensed stablecoins will no longer be required to secure their own separate AFS, market, or clearing and settlement facility licenses. This logical streamlining of Australia’s financial regulatory framework highlights ASIC’s commitment to encouraging responsible growth in the stablecoin market, which is rapidly evolving as part of the broader digital asset space.
ASIC’s regulation change demonstrates a careful balance between regulatory safeguards and market innovation. In a Thursday announcement, ASIC emphasized its dedication to supporting digital advancement while prioritizing consumer protection, by enabling eligible stablecoins to fall under an AFS license. This exemption primarily applies to the distribution of stablecoins such as AUDM, with potential extensions to other issuers as more stablecoins receive AFS licensing.
This regulatory development is crucial for the burgeoning stablecoin market in Australia, providing needed pathways for growth and integration with traditional financial systems. The initiative is set to enhance participation from financial intermediaries and foster a more dynamic digital asset economy. These steps underscore Australia’s proactive approach in adapting to and shaping the rapidly transforming financial landscape, paving the way for an inclusive and innovative financial ecosystem.
