Australia approves regulatory relief for stablecoin usage

The Australian Securities and Investments Commission (ASIC) has announced regulatory relief for stablecoin intermediaries. The exemption lets intermediaries distribute stablecoins from firms already holding an Australian Financial Services License (AFSL) without getting their own separate licenses.

The relief will apply to secondary distribution of stablecoins and will start once registered on the Federal Register of Legislation. This development marks the country’s first formal step toward easing licensing requirements in the digital assets sector.

As reported by Cryptopolitan at the beginning of the year, the Australian government had made new amendments to its legal regulations of digital assets that seek to improve the marketplace’s solidity and consumer safeguards.

The rules hoped to exempt small businesses and firms outside the financial service sector, while larger cryptocurrency trading platforms would be required to seek an AFSL

ASIC gives exemption to stablecoin distributors

ASIC has created the Corporations (Stablecoin Distribution Exemption) Instrument 2025/631 exemption to ease policies around stablecoin exchanges. Before this exemption, exchanges, brokers, and stablecoin platforms went through a long and costly process of applying for an AFSL. They also had to apply for market or clearing and settlement licenses, even when a licensed company already issued the specific stablecoin. Now, they don’t need a separate license as long as the stablecoin issuer already holds an AFSL.

AUDM by Catena Digital is the first token under this exemption, which means intermediaries can distribute it without applying for their separate licenses. However, ASIC still requires intermediaries to provide crucial information to clients, such as Catena Digital’s product disclosure statement (PDS) for AUDM (if the company prepared one). The PDS explains how the stablecoin works, the risks involved, and other important information people should know before trading it. 

ASIC said the exemption doesn’t change the legal status of stablecoins, but aims to allow companies to build more services for stablecoins while protecting consumers at the same time. In short, applying for a license is now simpler and quicker, but oversight on implementation remains strict.

This exemption is the first of its kind in Australia and shows that ASIC wants to promote innovations without sacrificing consumer safety.

ASIC plans to extend relief as the Treasury comes up with new rules

ASIC also hopes to extend this relief to other stablecoins in the future, but issuers must first apply for and receive an Australian Financial Services License (AFSL). With a license, the exemption can also apply to intermediaries, and users could access more stablecoins. The idea is to reduce the current pressure on intermediaries while the Australian Treasury works on a full and permanent framework for stablecoins.

CEO of Blockchain APAC, Steve Vallas, said ASIC’s exemption was practical because it removes a lot of friction that intermediaries face when they want to work with stablecoins. He added that the plan aligns with Australia’s financial services, but should be a temporary solution until the Treasury comes up with a permanent one.

The decision also connects to the work ASIC has been doing for the past year to explain how current financial laws apply to digital assets. The agency released a consultation paper called CP 381 in December 2024, which was linked to its updates to the guidance document known as INFO 225. In this document, ASIC requested public feedback on how the definitions of financial products should apply to many types of digital tokens. These included stablecoins, tokens created by crypto exchanges, meme coins, tokens backed by commodities, and wrapped tokens.

ASIC also included examples in the consultation paper to make it easier for businesses and intermediaries to understand when a digital asset should be treated as a financial product and what legal duties would apply to them.

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