In a statement released on Wednesday, October 29, 2025, the Australian Securities and Investments Commission (ASIC) has classified stablecoins, wrapped tokens, tokenized securities, and digital asset wallets as financial products in its new guidance.
Under this latest guidance, providers must obtain a license before offering these financial products in Australia. This is a major step toward regulating crypto-related platforms.
However, the body added that Bitcoin, the largest crypto by market share, will not be considered as a type of financial product.
ASIC was formed in July 1998 to regulate cryptocurrency and digital assets, with a focus on market integrity and consumer protection.
Under the existing ASIC Act, the body determines if a crypto asset or crypto-related service falls under the definition of a “financial product.”
For crypto assets or related services considered as financial products, the providers must comply with all relevant ASIC obligations. These obligations include obtaining a licence from the Australian Financial Services (AFS), meeting disclosure obligations, and meeting ongoing responsible entity requirements.
In a nutshell, the existing laws prohibit cryptocurrencies and crypto-related services that are “considered” financial products against misleading or deceptive conduct.
Today, ASIC has clarified how the existing laws
apply to digital assets, giving investors improved protections and providing issuers with greater certainty to operate and innovate.
Stablecoins, Wrapped Tokens Considered as Financial Products: ASIC
The updated version of ASIC’s guidance now considers products such as stablecoins, wrapped tokens, tokenized securities, and digital asset wallets as financial products.
Hence, issuers of such products must have an Australian financial services licence (AFSL) to offer these products.
The updated guidance comes after months of consultation with the industry. Prior to this time, ASIC released a consultation paper in December 2024 seeking feedback on how existing laws should apply to digital assets.
To give these issuers time to carefully consider this guidance and apply for licences, ASIC has granted a sector-wide “no-action position” until Tuesday, June 30, 2026.
ASIC added that it would only factor in the “no-action position” when considering the issuer’s historical conduct. Nevertheless, it
will continue to act against egregious conduct where we see significant consumer harm or widespread systemic misconduct.
The corporate regulator also noted that it will provide regulatory relief to certain stablecoin and wrapped token issuers to “smooth the transition” to the Treasury’s proposed cryptocurrency law reform.
ASIC commissioner Alan Kirkland stated that the new guidance should provide clarity for firms seeking to innovate around digital assets, an area he expects will grow significantly.
According to him,
So updating this guidance is important, considering developments in markets and the technology since our last update, to clarify which types of digital assets fall within existing definitions to create space for businesses to confidently innovate and engage.
He added that,
Distributed ledger technology and tokenisation are reshaping global finance. ASIC’s guidance provides the regulatory clarity that firms have been calling for to innovate confidently in Australia.
This move is built on Australia’s recent efforts to create a clearer regulatory framework for cryptocurrencies and digital assets.
According to industry experts, the move shows that ASIC welcomes innovation. Still, the innovation must be balanced with robust consumer protection and adherence to the same high standards expected of the traditional financial sector.
