Crypto news in Australia has had a few hot-button topics of late, but there is little doubt that one of the most important centres on the recently proposed digital assets regulation. On September 18, 2025, the Australian Securities & Investments Commission (ASIC) announced its new regulations, as well as a new class exemption for intermediaries who deal in stablecoins.
The move is a critical one, meant to support industry and technological innovation, reduce the amount of red tape, and ultimately provide a much smoother transition as it relates to the upcoming stablecoin regulatory framework.
In order to garner a better understanding, it helps to break down what this exemption entails and what it means for stablecoin distribution in Australia.
Stablecoin Distribution Exemption
The latest reform on behalf of ASIC comes in the ASIC Corporations Instrument 2025/631 document. This exemption would ultimately provide class relief, allowing intermediaries that engage in secondary stablecoin distribution to avoid specific licensing requirements.
To make it simple, intermediaries – brokers, exchanges, and custodians – won’t need to hold an Australian Financial Services License (AFSL) or any kind of clearing licence so long as the stablecoin they distribute has been issued by an entity that is AFS licensed.
This is a significant step because it ultimately provides a path to greater efficiency for intermediaries while also helping to keep issuers within the scope of ASIC’s oversight.
Conditions and Limits
While the focal point is no doubt the relief offered in the form of exemptions, it is critical for intermediaries to know that this is not a free pass. ASIC is still very strict about its boundaries, especially when it applies to exemptions to this classification.
For starters, the stablecoin in question must have been issued by an entity that already has an AFS licence in place. The exemption would then apply only to the secondary distributor of that stable license, not to the stablecoin issuer. Intermediaries who rely on this exemption must also ensure that the Product Disclosure Statement (PDS) has been adequately provided by the issuer and is easily accessible to clients.
It is important to note that the exemption is not a permanent one. As of now, these exemptions are set to expire on 1 June 2028, unless new laws come into place or the current legislation is extended.
The conditions are meant to provide reassurance that consumers will remain protected throughout the process. Greater efficiency on the part of issuers and intermediaries is crucial, but Australia has been thorough about protecting consumer rights as they pertain to digital assets and cryptocurrencies.
Who is Impacted?
In order to gain a true understanding of this exemption, it helps to know who is affected. There are three key groups to consider: intermediaries, consumers, and stablecoin issuers.
Consumers. This is a big move for consumers because they stand to gain greater access to the digital assets marketplace. With more regulated stablecoin options, not to mention mandatory disclosure documents, consumers are better informed and protected about the potential risks than ever before.
Stablecoin Issuers. Issuers that hold an AFS licence – think Catena Digital Pty Ltd, the issuer of AUDM – will also find it much easier to make partnerships with intermediaries due to the requirements for licensing and the exemptions given to those intermediaries.
Intermediaries. Finally, there are the intermediaries themselves. These entities – brokers, exchanges, and payment service providers – will all benefit in the most direct way possible. They are able to distribute eligible stablecoins without having to obtain licensing themselves.
Why Was the Exemption Introduced?
In order to gain a greater understanding of this process, it helps to know why exemptions were introduced in the first place. Ultimately, ASIC’s decision comes from the attempt to achieve a balance between regulation and innovation. By easing the licensing requirements as they pertain to intermediaries, the hope is for a much more dynamic digital assets market without diluting current regulatory oversight.
In reality, there are a few main purposes for this exemption. For starters, the goal is to reduce the overall regulatory burden taken on by governing bodies through the removal of duplicative licensing requirements.
Secondly, the goal is to foster innovation in tokenisation, payments, and digital finance. This is achieved by giving businesses the necessary room for growth that would not have been there otherwise.
Finally, the move is meant to be a bridge to any future stablecoin framework in Australia. That framework is constantly in development, generally through a series of consultations as well as draft laws. In the end, ASIC looks to encourage growth without having to sacrifice protection to consumers.
Challenges and Risks
The benefits are numerous, but the exemption is not without its challenges and risks as it pertains to the Australian stablecoin market. There are four primary areas of concern: that it is a temporary measure, the initial scope is narrow, systematic consumer risks, and ongoing disclosure obligations.
Consumer Risks. Even though the measure is provided to retain consumer protection while providing greater access to stablecoins, there are other risks to consider. For starters, fraud, financial stability, redemption guarantees, and collateral quality all remain concerns for stablecoins in general.
Temporary Measure. Arguably, the biggest concern about the exemption is that it is a temporary move. The exemption is expected to expire in June 2028, which creates uncertainty as to whether or not this regime will remain a permanent fixture or whether there will be further changes down the line.
Ongoing Disclosure Obligations. Interlicences are not totally off the hook. They must provide access to risk documents or face the potential for liability. It isn’t as stringent a step as needing to acquire a licence, but it is a hindrance, nonetheless.
Narrow Scope. Because this exemption only pertains to stablecoins issued by licensed entities, there are limitations. Tons of popular tokens will remain outside the exemption list, limiting options for intermediaries.
What it All Means
For consumers, this move should create a greater level of availability when it comes to accessing stablecoins that are trusted. More importantly, that access should come at a lower cost. Mandatory disclosures also ensure that they are getting the best information possible before making a decision.
For businesses, there is a reduction in compliance costs while speeding up the ability to offer stablecoins. Payment providers and exchanges are able to go through onboarding more easily, which could drive faster adoption.
A Vital Step in the Right Direction
Though it has been necessary for some time to introduce more stringent and clearly pronounced regulatory guidance, this is a key move for financial institutions and stablecoin backers. As Australia aims to join the global leadership within the crypto space, regulations like these will play an important part.
Consumer confidence is necessary to grow the digital assets marketplace. This move in regulatory legislation is great for consumers but is equally important for issuers and other financial institutions. With greater clarity, both sides can move with greater confidence than ever before.
