The corporate regulator in Australia has provided updated guidance on digital assets, which has been positively received by blockchain executives, although concerns have been raised regarding the fast-tracking of licenses.
The Australian Securities and Investments Commission updated its Info Sheet 225 on Wednesday, announcing that firms offering crypto services deemed as financial products must join the Australian Financial Complaints Authority and apply for an Australian Financial Services License by June 30.
Bitcoin not classified as a financial product
John Bassilios, a crypto attorney and partner at Hall & Wilcox, informed Cointelegraph that the new guidance indicates that tokens like Bitcoin (BTC), gaming non-fungible tokens, and tokenized concert tickets are likely not to be classified as financial products.
“If you operate an exchange that exclusively deals in Bitcoin, then you are not required to apply for a license according to this guidance,” he noted.
Conversely, stablecoins, wrapped tokens, tokenized securities, and digital asset wallets are categorized by ASIC as financial products in its revised guidance.
Bassilios mentioned this could also encompass yield-bearing stablecoins, tokenized real estate, tokenized bonds, and staking as a service, particularly when there are stipulations such as a minimum staking amount or lock-up duration.
ASIC also indicated it plans to grant regulatory relief for stablecoin and certain wrapped token distributors to facilitate the transition to proposed legislative changes.
Guidance brings clarity, yet structural challenges persist
Steve Vallas, CEO of consulting firm Blockchain APAC, stated to Cointelegraph that the updated guidance establishes a challenging standard requiring substantial coordination among policy, law, and industry for effective implementation.
“ASIC has decided to operationalize policy ahead of legal reforms. This approach provides short-term certainty but also highlights how much interpretation is now substituting for legislative action,” he commented.
Vallas noted that the actual challenge will be in implementation, with possible “structural bottlenecks” leading to complications.
“These include limited recognized local expertise, banking access, and insurance capacity. Without practical solutions, compliance risks could shift from legal challenges to logistical issues,” he described.
Welcome and long-awaited guidance
Amy-Rose Goodey, CEO of the advocacy group Digital Economy Council of Australia, shared with Cointelegraph that the industry has been anticipating clarity like this for a considerable time.
“It provides insight and visibility into ASIC’s stance and how they will approach businesses in the digital asset sector, which had previously been unclear,” she remarked.
Nonetheless, Goodey acknowledged ongoing concerns regarding ASIC’s resources and its ability to efficiently process a high volume of licenses to ensure compliance among businesses.
Related: Young Australians’ biggest financial regret: Ignoring Bitcoin at $400
The industry is presently undergoing a “transition stage,” according to Goodey, as businesses restructure and reevaluate the licenses necessary for compliance.
The Albanese government introduced a new crypto framework regulating exchanges under existing financial services laws in March, with the Treasury concluding a consultation on draft legislation that aims to extend financial sector laws to crypto service providers on Friday.
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