🔍 What’s in the New Guidance
ASIC’s information sheet INFO 225 – “Crypto‑assets” provides a roadmap for firms involved in crypto‑assets whether tokens, exchanges, wallets or services. It outlines when the Corporations Act and ASIC Act apply.
Key points include:
- If a digital asset or its structure meets the definition of a financial product, it triggers licencing, disclosure and regulatory obligations.
- The guidance includes 13 worked examples, illustrating how various crypto‑asset arrangements might or might not be “financial products”.
- ASIC is clear that even offshore or decentralised structures cannot evade Australian law if the product is offered or promoted to Australians.
✅ What the Industry Welcomes
- The direction gives long‐awaited clarity: firms now have a clearer sense of when crypto services cross into licenced territory.
- For example, tokens such as pure cryptocurrencies (like Bitcoin) are less likely to be financial products, whereas stablecoins, tokenised securities, wrapped tokens or staking services may be.
- Some transitional relief proposals have been mooted for stablecoin issuers and wrapped tokens.
⚠️ What’s Still Worrying the Industry
Despite the improvements, several concerns remain:
- Licensing bottlenecks: Firms worry about the time and resources needed to apply for Australian Financial Services (AFS) licences and meet obligations.
- Resource constraints at ASIC: The regulator may struggle to process a surge of applications and enforce efficiently.
- Practical compliance hurdles: Issues such as banking access, insurance cover, custody standards and global interoperability remain tricky.
- Uncertainty about timing: While the draft changes are out (via Consultation Paper 381), the full final guidance is still to be published, indicating a transition phase.
🎯 What This Means for Crypto Businesses in Australia
If you operate or plan to operate in Australia’s crypto sector:
- You should perform a rights/feature analysis of your token or service to determine if it is a financial product under the new guidance.
- Start preparing license‑applications, compliance frameworks and governance systems now—don’t wait for the final version.
- Banks, custodians, insurance providers and legal advisers will become key partners in your journey.
- Use this clarity as a competitive edge: firms that move early and comply may gain trust and positioning ahead of regulation.
🛒 Want to Act? Visit KXZ Store
Whether you’re building slowly or diving into crypto operations, having flexible funding and access is critical. Visit KXZ Store for a range of crypto gift cards—for major platforms and chains—enabling you to diversify, transfer or access crypto with ease and speed.