TLDR
- ASIC has introduced new relief measures to support stablecoin intermediaries in Australia.
- The new measures exempt intermediaries from holding separate licenses when distributing eligible stablecoins and wrapped tokens.
- Providers can now hold digital assets in omnibus accounts with required record-keeping and reconciliation processes.
- ASIC’s guidance clarifies how existing laws apply to digital assets, including stablecoins and wrapped tokens.
- Stablecoin issuers must maintain reserves equal to or greater than the total value of the underlying currency.
Australia’s securities regulator, the Australian Securities and Investments Commission (ASIC), has approved a new phase of crypto relief. This includes licensing and custody exemptions for certain stablecoins and wrapped tokens. The move aims to support innovation and growth in Australia’s digital assets and payment sectors.
Licensing and Custody Exemptions for Stablecoins and Wrapped Tokens
ASIC’s new class relief exempts intermediaries from holding separate licenses when distributing eligible stablecoins and wrapped tokens. This applies to those with existing Australian Financial Services (AFS) licenses. ASIC has also authorized providers to hold digital assets in omnibus accounts, subject to record-keeping and reconciliation requirements.
These measures build on ASIC’s September decision to grant relief for stablecoin intermediaries. The previous relief allowed distributors to operate without separate licenses when dealing with stablecoins from AFS-licensed issuers. According to ASIC, the update was included in their October guidance, which outlined how existing laws apply to digital assets.
ASIC Introduces Flexible Record-Keeping Guidelines
The latest relief allows stablecoin issuers to maintain reserves equal to or greater than the total value of the underlying currency. Wrapped tokens must also maintain equivalent reserves. These issuers must publish quarterly reserve reports after four months, and annual audited reports after 16 months, confirming their reserves are fully backed.
The measures also include a principles-based approach to record-keeping, a request made by the industry. Some firms had asked for clearer rules on these procedures. ASIC opted for a more flexible approach, allowing firms to establish appropriate processes within existing regulations.
Consultation and Feedback on Relief Measures
ASIC began seeking public feedback on the proposed relief on the same day as the announcement. The consultation period concluded in mid-November, and the final measures were announced on Thursday. Industry feedback supported the omnibus account structures for digital-asset custody, citing cost and speed advantages.
Some firms, however, requested more detailed record-keeping guidelines. ASIC emphasized that the relief would be automatically repealed by January 1, 2029. This provides firms with time to transition to the broader regulatory framework established by the Treasury.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
