Australia Releases Long-Awaited Crypto Guidelines

After years of anticipation, the Australian Securities and Investments Commission (ASIC) has finally released comprehensive guidance for the country’s cryptocurrency sector — a move seen as a turning point for digital asset regulation in Australia.

Overview

On October 29 2025, ASIC published the new framework, which aims to clarify how existing financial laws apply to crypto assets, exchanges, and stablecoins operating in the local market.

According to ASIC, the guidance is designed to protect consumers while promoting innovation in one of the world’s most crypto-curious nations. It outlines how token issuers and trading platforms must comply with financial services laws, including licensing requirements, product disclosure obligations, and anti-money laundering (AML) standards.

Key focus areas include distinguishing between “financial product” tokens and “non-financial” digital assets, as well as introducing stricter expectations for custody of client funds. ASIC has also indicated that certain stablecoins may fall under managed investment or payment product categories — a point that could significantly impact issuers and exchanges offering such assets.

“The crypto industry has matured, and so must our regulatory approach,”

said ASIC Chair Joe Longo in a statement.

“Our goal is to ensure that investors can participate in these markets safely, while holding providers accountable under existing laws.”

The announcement marks the most detailed crypto policy direction from ASIC since 2021, when it first cautioned exchanges about offering unlicensed financial products.

Industry Reaction: Applause Mixed with Alarm

While many in the crypto community have welcomed the long-awaited clarity, others argue that the new guidance could impose burdensome restrictions that stifle innovation. Industry participants say the rules, though well-intentioned, could inadvertently push smaller projects offshore due to compliance costs and regulatory uncertainty.

Blockchain Australia, the country’s leading industry body, praised ASIC for addressing long-standing ambiguity but called for further consultation to refine the framework.

“We finally have a starting point for structured regulation,”

said CEO Simon Callaghan.

“However, some of the proposed definitions are overly broad and risk capturing blockchain projects that have no financial product characteristics.”

Exchanges operating in Australia, including global firms such as Kraken and Binance, are reportedly reviewing their local operations to ensure compliance. A spokesperson for one exchange described the new obligations as

“significant but manageable,”

noting that the company has already implemented many of the required standards under global frameworks. However, smaller startups may not find compliance as straightforward. 

Several local founders expressed concern that the new expectations could limit innovation and make Australia less competitive in attracting blockchain businesses.

“It’s a step forward in clarity but a step back for accessibility,”

one developer commented.

“Regulation should protect investors without discouraging entrepreneurship.”

Next Steps: Balancing Oversight and Innovation

The release of ASIC’s guidance aligns with broader global efforts to tighten crypto oversight following high-profile market collapses and scams. Similar frameworks have recently emerged in the European Union under the Markets in Crypto-Assets (MiCA) regulation and in jurisdictions like Hong Kong and Singapore.

Australia’s federal government is also preparing to introduce a “Digital Asset Platform Licensing Regime,” expected to complement ASIC’s approach by establishing clear operational standards for exchanges, custodians, and token issuers. Treasury officials say the upcoming legislation will draw on feedback from the industry and international best practices.

Despite the concerns, many experts view the development as a necessary foundation for mainstream adoption. By clarifying how crypto products fit within Australia’s financial system, regulators hope to encourage responsible innovation while weeding out bad actors.

Still, questions remain about enforcement and interpretation. Legal analysts note that ASIC’s guidance, while detailed, leaves some ambiguity around decentralised finance (DeFi), tokenised real-world assets, and algorithmic stablecoins — areas that are rapidly evolving.

“The next six months will be crucial,”

said digital asset lawyer Hannah Pham.

“We’ll see how ASIC applies these principles in practice and whether adjustments are made as the industry provides feedback.”

Australia’s crypto ecosystem stands at a crossroads — welcoming long-awaited regulatory clarity while bracing for the challenges of compliance. Whether the new framework will solidify the country’s position as a global blockchain hub or drive innovation elsewhere will depend on how flexibly regulators and innovators can work together in the months ahead.