In a groundbreaking move, the Australian financial regulator has released an updated version of how existing laws apply to digital assets.
The Australian Securities and Investments Commission (ASIC) updated its guide on how existing laws apply to virtual assets. Not only does the ASIC want to bring about clarity with the updated version, but it also endeavors “giving investors improved protections and providing firms with greater certainty to operate and innovate”.
Under the new version of the guidance, stablecoins, wrapped tokens, tokenised securities, and digital asset wallets will be considered financial products. ASIC Commissioner Alan Kirkland said, “Many widely traded digital assets are financial products under current law – and will remain so under the Government’s proposed law reform – meaning many providers require a financial services licence. Licensing ensures consumers receive the full suite of protections under the law and allows ASIC to act when poor practices lead to harm.”
This is not the first time that Australia has made efforts to align its digital assets. In December 2024, the Australian Transaction Reports and Analysis Centre (AUSTRAC) cracked down on crypto ATM providers. AUSTRAC set up a crypto task force to identify and find out crypto ATM providers that did not comply with the law.
AUSTRAC CEO Brendan Thomas said that many Australians are falling victim to scams carried out through cryptocurrency, as crypto ATMs are widely accessible and are irreversible after the transaction has gone through.
Thomas stated, “Cryptocurrency and crypto ATMs are attractive avenues for criminals looking to launder money, as they are widely accessible and make near-instant and irreversible transfers.”
