ASIC provides relief for intermediaries providing stablecoin-related services
The Australian Securities and Investments Commission (ASIC) has announced a landmark move to foster growth and innovation in the digital assets and payments sectors.
In a new initiative, ASIC has granted class relief to intermediaries involved in the secondary distribution of stablecoins issued by entities holding an Australian Financial Services (AFS) licence.
The ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631 will exempt intermediaries from the need to obtain separate AFS, Australian market, or clearing and settlement facility licences as required under the Corporations Act 2001 (Cth) when offering services related to stablecoins which are issued by an AFS holder.
The relief has been granted in favour of the ‘AUDM’ stablecoin issued by Catena Digital Pty Ltd, a provider of Australian dollar-backed stablecoins which was recently granted an AFS licence with an authorisation to issue non-cash payment facilities. ASIC has signalled that as more issuers of eligible stablecoins secure AFS licences, it will consider extending the relief to intermediaries who also distribute those coins.
Intermediaries relying on the relief must ensure that retail clients have access to the exempt stablecoin’s product disclosure statement (PDS), in cases where one has been prepared by the issuer.
The regulator further emphasised its commitment to responsible innovation, underscoring the importance of consumer protection through the requirement that stablecoins be issued by AFS holders which have demonstrated compliance with financial services obligations and standards in being granted their licence.
Background
A stablecoin is a type of digital currency designed to maintain a stable value, often tied to fiat currency such as the US or Australian dollar. For this reason, it is considered to operate as a bridge between cryptocurrency and traditional forms of money.
This relief comes after ASIC consulted on draft updates to its guidance on crypto and digital assets, Information Sheet 225: Crypto-assets, in December 2024.
Consultation Paper 381: Updates to INFO 225: Digital assets: Financial products and services (CP 381) outlined a series of proposed updates aimed at clarifying how existing financial services laws apply to digital assets and included practical examples illustrating how current definitions of financial products extend to various types of crypto-related instruments, including stablecoins.
CP 381 asserted that under current legislation, certain stablecoins may qualify as financial products, specifically a non-cash payment facility – meaning their issuers could be required to hold an AFS licence to operate lawfully.
The consultation paper invited input on whether transitional measures or regulatory relief could help ease the shift from existing financial regulations to the Government’s proposed reform framework for stablecoins.
A main concern raised by stablecoin issuers was that the distribution of their stablecoins would not be commercially feasible unless licensing requirements for distributors were eased ahead of the upcoming reforms.
Accordingly, the relief aims to reduce the significant cost and compliance burden associated with intermediaries providing stablecoin-related financial services applying for, and holding, AFS licences.
Next steps
The relief will commence the day following its registration on the Federal Register of Legislation, marking a significant step in shaping Australia’s regulatory framework for digital finance. It is anticipated to be repealed on 1 June 2028, by which time the government’s digital asset reforms are projected to have taken effect.
ASIC is also finalising its updates to Information Sheet 225 and expects to publish the updated guide in the coming weeks; alongside public submissions received in response to CP 381.
The regulator says it will continue to collaborate closely with the Treasury Department on the rollout of the government’s digital asset reform agenda.
This is in addition to regulatory relief provided in July 2025 to participants involved in Project Acacia enabling live testing of tokenised asset transactions and digital forms of money in a controlled environment, and marking a significant step toward integrating blockchain-based financial technologies into mainstream markets.
This article was written with assistance by Evan Lianos, Law Graduate.
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