Australia’s ASIC Simplifies Rules for Stablecoin and Wrapped Token Distribution
Australia’s financial watchdog has introduced new exemptions to simplify the distribution of stablecoins and wrapped tokens, aiming to boost operational efficiency and reduce costs for businesses.
Key Takeaways
- The Australian Securities and Investments Commission (ASIC) has eliminated separate licensing requirements for intermediaries dealing with stablecoins and wrapped tokens.
- The new rules permit the use of omnibus accounts, offering benefits such as faster transactions, reduced operational costs, and enhanced risk management.
- Industry leaders believe this clarity will accelerate the adoption of stablecoins in real‑world applications as global demand continues to rise.
ASIC is providing “class relief” for intermediaries involved in the secondary distribution of specific stablecoins and wrapped assets, removing the need for separate Australian Financial Services (AFS) licences when handling these products. This move is expected to ease the compliance burden that has long frustrated market participants.
Omnibus Accounts to Cut Costs and Boost Efficiency
Under the new measures, intermediaries can now use omnibus account structures, provided they maintain proper records. ASIC highlights that these structures offer several advantages, including faster transactions, lower operating costs, and improved risk and cybersecurity practices.
For issuers, this change represents a more level playing field. Drew Bradford, CEO of Australian stablecoin issuer Macropod, states that the new clarity gives companies the confidence to expand their product offerings. He adds that the streamlined approach eliminates significant obstacles that previously hindered experimentation and growth.
Industry Praise and Global Demand
The new clarity is seen as crucial for scaling real‑world applications such as payments, cross‑border transfers, treasury functions, and on‑chain settlement. Bradford believes this move signals Australia’s intention to remain globally competitive while maintaining regulatory oversight.
Angela Ang, head of policy and strategic partnerships at TRM Labs, commends the decision, anticipating that Australia’s regulatory environment will strengthen further in the coming year, encouraging more investment and innovation.
This policy shift comes as global demand for stablecoins reaches unprecedented levels. The total market capitalization of stablecoins has exceeded $300 billion, according to RWA.xyz, with a 48 % increase since the beginning of the year. Tether remains the dominant player with a 63 % market share.
Comprehensive Regulatory Framework
Last month, Australia introduced its first comprehensive regulatory framework for crypto exchanges and custody providers, aiming to enhance asset protection and reduce risks for local users. The new bill would mandate that platforms holding customer crypto obtain an Australian Financial Services Licence and operate under ASIC supervision. Lawmakers believe these reforms could unlock up to $24 billion in annual productivity gains while bolstering investor protections.
With these new exemptions and a comprehensive regulatory framework, Australia is positioning itself as a competitive player in the global crypto market, encouraging innovation while ensuring robust investor protections.
