Regulatory Body ASIC in Australia Pursues Simplification of Stablecoin Policies - Insights
The Australian Securities and Investments Commission (ASIC) has announced new licensing exemptions for intermediaries distributing stablecoins issued by licensed entities. This move is aimed at lowering regulatory hurdles for intermediaries distributing the AUDM stablecoin, issued by Catena Digital Pty Ltd, and is part of Australia's efforts to position itself as a leader in the stablecoin market.
Under the ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631, intermediaries involved in distributing certain stablecoins will no longer need to hold multiple Australian financial licences. Distributors handling the AUDM stablecoin will be exempt from obtaining a financial services license for providing general advice, trading, making a market, or providing custody services.
However, the administrators of AUDM stablecoins must ensure compliance with specific regulatory requirements set by ASIC. These include maintaining sufficient reserves, transparent reporting, and consumer protection measures, to continue benefiting from the license exemptions effective June 1, 2028. The exemptions will lapse on this date, but ASIC has the option to extend or replace them.
The temporary timeframe allows regulators to review the impact of the framework and make adjustments as the stablecoin market evolves. This move comes after the passage of the GENIUS Act in the United States and the U.K.'s recent pivot towards stablecoin frameworks and innovation sandboxes. These global developments are accelerating cooperation and innovation in the crypto space.
The U.S. and U.K.'s influence over a third of the world's financial system puts pressure on Australia to embrace innovation and remove barriers to crypto adoption. A recent Binance survey indicated growing frustration with banking restrictions and calls for easier access to cryptocurrencies in Australia. The global contest to dominate the stablecoin market is intensifying, with countries racing to position themselves as industry leaders.
Distributors using these exemptions must provide retail clients with the current Product Disclosure Statement (PDS) to maintain transparency. Clearing and settlement activities involving AUDM will not trigger licensing obligations. The number of Australians holding cryptocurrencies remains relatively low compared to global adoption levels.
This update significantly lowers regulatory hurdles for intermediaries distributing the AUDM stablecoin, making it easier for Australians to access and use this innovative financial instrument. As the stablecoin market continues to evolve, it is expected that more countries will follow Australia's lead in creating a supportive regulatory environment for stablecoin adoption.
