The corporate regulator of Australia has published revised guidance on digital assets, a move that blockchain leaders appreciate while expressing worries about the rapid issuance of licenses.
The Australian Securities and Investments Commission revamped its Info Sheet 225 on Wednesday, stating that firms offering crypto services categorized as financial products must register with the Australian Financial Complaints Authority and apply for an Australian Financial Services License by June 30.
Bitcoin is not classified as a financial product
John Bassilios, a crypto attorney and partner at Hall & Wilcox, informed Cointelegraph that per the new guidance, tokens such as Bitcoin (BTC), gaming non-fungible tokens, and tokenized concert tickets are unlikely to be regarded as financial products.
“If you operate an exchange solely dealing in Bitcoin, then you aren’t required to seek a license following that guidance,” he stated.
In contrast, stablecoins, wrapped tokens, tokenized securities, and digital asset wallets are regarded as financial products in ASIC’s updated guidance.
Bassilios added that this may also encompass yield-bearing stablecoins, tokenized real estate, tokenized bonds, and staking services with conditions like a minimum staking balance or lock-up periods.
ASIC indicated it has provisionally decided to offer regulatory relief for stablecoin and certain wrapped token distributors to ease the transition towards proposed law reforms.
Clear guidance, yet structural challenges persist
Steve Vallas, CEO of consulting firm Blockchain APAC, mentioned to Cointelegraph that the revised guidance establishes a high standard that necessitates substantial coordination across all policies, laws, and the industry for effective implementation.
“ASIC has opted to put policy into action ahead of law reforms. This strategy provides short-term certainty but highlights how much interpretation is now substituting for legislation,” he remarked.
Vallas emphasized that the true challenge will unfold during implementation, with “structural bottlenecks” expected to create complications.
“These include a lack of recognized local expertise, limited banking access, and insufficient insurance capacity. Without actionable solutions, compliance may shift from a legal issue to a logistical hurdle,” he noted.
Encouraging guidance, long-awaited
Amy-Rose Goodey, CEO of the advocacy group Digital Economy Council of Australia, shared with Cointelegraph that the industry has long anticipated clarity like this.
“It provides insight and visibility into ASIC’s viewpoint and how they plan to assess businesses in the digital asset sector, which we didn’t fully understand until now,” she stated.
However, Goodey concurs that there are ongoing concerns regarding ASIC’s resources and its capability to efficiently process a high volume of licenses to ensure compliance among businesses.
Related: Young Australians’ greatest financial regret: Overlooking Bitcoin at $400
Goodey mentioned that the industry is currently in a “transition stage,” as businesses restructure and assess the licenses they need to hold.
The Albanese government introduced a new crypto framework regulating exchanges under existing financial services legislation in March, with the Treasury concluding a consultation on draft legislation on Friday that would extend finance sector laws to crypto service providers.
Magazine: Cliff bought 2 homes with Bitcoin mortgages: Clever… or insane?
