ASIC Issues Updated Rules Clarifying How Financial Laws Apply to Crypto Assets

The Australian Securities and Investments Commission (ASIC) has issued a major update to its Info Sheet 225.

Notably, the new move expands how financial services laws apply to digital-asset products and platforms. The revised guidance replaces the term “crypto assets” with the broader “digital assets.”

This updated terminology encompasses tokenized, virtual, and coin-based products within a single, unified category. According to ASIC, the update aims to provide regulatory clarity. Importantly, the measure precedes the Treasury’s forthcoming Digital Asset Platforms and Payment Service Providers bills.

Expanded Framework and Case Studies

Furthermore, the latest version of Info Sheet 225 increases the number of examples from 13 to 18. This update offers practical illustrations for a wider range of digital asset activities. These include gaming NFTs, wrapped tokens, exchange-issued tokens, staking-as-a-service models, and yield-bearing stablecoins.

Each case examines whether an asset might qualify as a managed investment scheme, derivative, or non-cash payment facility under the Corporations Act.

Additionally, ASIC reinforced that Australian law applies to offshore or decentralized projects if they market or sell services to local users.

The regulator warned that foreign platforms cannot rely on their physical location to bypass Australian oversight.

Custody Standards and Financial Requirements

Moreover, firms holding client digital assets must maintain at least AUD 10 million in net tangible assets, unless custody is incidental.

ASIC states that the rule strengthens investor protection and aligns with the growing importance of safe custody in digital-asset markets.

Stablecoin Relief and Transitional Measures

ASIC’s update follows its September decision granting class relief to intermediaries distributing stablecoins issued by licensed entities. The exemption allows these products to be distributed without separate market or clearing licenses. However, issuers must remain accountable for disclosure and compliance.

Additionally, the regulator outlined transitional measures for experienced crypto professionals. These measures will help them qualify as responsible managers under AFS license conditions. Notably, ASIC hinted at possible “no-action” relief for firms actively seeking authorization.

Coordination With Treasury’s Upcoming Legislation

Meanwhile, the Labor government is finalizing a licensing framework for digital asset platforms, expected to be released later this year.

ASIC stated that its own framework would evolve in line with Treasury’s reforms. However, it urged firms to start preparing for compliance now.

In a public statement, a spokesperson for local exchange Swyftx said the industry supports balanced regulation that protects consumers while promoting innovation. The spokesperson further noted that poorly designed policies could inadvertently drive users to offshore platforms.

Guidance for Fund Managers and ETP Issuers

In a notable addition, ASIC introduced new rules for fund managers and exchange-traded product issuers offering retail access to digital assets. The guidance outlines expectations for custody, risk management, and disclosure under Chapter 5C of the Corporations Act.

Meanwhile, ASIC declined to define what constitutes “true DeFi.”

Instead, it explained that licensing requirements depend on specific facts and the roles of participants.

The regulator acknowledged overlapping responsibilities with APRA, AUSTRAC, ACCC, ATO, and the Reserve Bank of Australia. In doing so, it confirmed its role within a broader regulatory network for digital assets.