ASIC welcomes consultation on stablecoin distribution extension

The Australian Securities and Investments Commission (ASIC) has invited industry consultation on its proposed amendment to the legislative instrument governing the secondary distribution of a stablecoin issued by an Australian financial services license (AFSL)-holder.

The current instrument introduced last week – ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631 – allows intermediaries to be exempt from the requirement to hold a separate AFS, Australian market or Australian clearing and settlement facility licence in order to provide services related to stablecoins issued by an AFS licensee.

The proposed changes to the instrument include:

• Add a second named stablecoin – AUDF, issued by Forte Securities Australia Pty Limited
• “Some minor consequential and clarification changes”

The initial exemption relief was granted in relation to the AUDM stablecoin issued by Catena Digital Pty Ltd and would only require intermediaries looking to leverage the relief to make the stablecoin’s Product Disclosure Statement (PDS) available to clients.

“[This is] an important step in facilitating growth and innovation in the digital assets and payments sectors,” the corporate regulator’s statement from 18 September said.

“As and when more issuers of eligible stablecoins obtain an AFS licence, ASIC will consider extending the above relief to intermediaries distributing those stablecoins.

“ASIC is committed to supporting responsible innovation in the rapidly evolving digital assets space, while ensuring important consumer protections are in place by having eligible stablecoins issued under an AFS licence.”

Industry feedback on the proposal is due by Thursday 2 October.

The announcement comes at the same time as Assistant Treasurer and Financial Services Minister, the Hon Daniel Mulino, announced yesterday that the government would open consultation on draft legislation to regulate digital asset platform operators and ensure they fall under the “regulatory remit of Australian Financial Services law”.

“This is a preliminary version of the legislation, and we are seeking stakeholder feedback on its effectiveness and clarity before proceeding further,” Mulino said.

“The final legislation will introduce a new framework for digital asset businesses in Australia.

“It is about legitimising the good actors and shutting out the bad, giving businesses certainty and giving consumers confidence.”