Australia’s ASIC Reduces Barrier for Stablecoin and Wrapped-Token Distribution

Australia’s securities regulator has introduced new exemptions that lower licensing and custody requirements for stablecoin and wrapped tokens, marking one of the country’s clearest steps toward practical digital-asset reform.

The measures, announced on December 9, aim to streamline how intermediaries distribute and store digital assets while maintaining consumer safeguards.

https://twitter.com/coinheadline/status/1998998833901301826?s=20

ASIC Issues New Instruments to Clarify Licensing and Custody Obligations

The Australian Securities and Investments Commission (ASIC) released Instruments 2025/867 and 2025/871, expanding on earlier relief that supported stablecoin distribution.

Instrument 2025/867 removes the requirement for separate Australian Financial Services, market, or clearing and settlement facility licenses when intermediaries deal in eligible stablecoins or wrapped tokens.

To qualify, distributors must comply with the instrument’s conditions, such as providing a Product Disclosure Statement to retail clients when available from an eligible issuer.

The update also relieves issuers from certain transaction-specific reporting duties, amending subsection 1017F(2), where obligations once applied regardless of an issuer’s role.

Furthermore, intermediaries handling wrapped tokens are shielded from being classified as issuers under section 761E(5), which previously triggered disclosure duties that did not reflect how wrapped-token markets operate.

Instrument 2025/871 modernizes Australia’s custody rules for digital assets.

It explicitly permits omnibus account structures, provided accurate records are kept and regular reconciliation is performed.

This formalizes an industry-standard practice where pooled custody enhances transaction speed, lowers costs, and reduces operational risks when managed with proper oversight.

Stablecoin Market Growth Fuels Regulatory Tensions

These reforms arrive as the stablecoin market pushes past $308 billion in global market cap, growing 48% this year.

Data from DefiLlama shows Tether’s USDT holds about 60% of the market, a sign of how fast demand is rising and why regulators are taking a closer look at existing frameworks.

The growth also comes with sharper regulatory debate. In mid-November, major U.S. banking groups urged officials to block merchant rewards, cashbacks, and discounts linked to stablecoin payments.

They argued that these incentives function as indirect interest and fall under the limits set by the GENIUS Act.

Coinbase disagreed, saying the law restricts only what stablecoin issuers can offer.

The major cryptocurrency exchange said the proposal would reach far beyond the original intent of the law and warned that expanding the ban would give regulators too much control over how people use their digital assets.

At the same time, Western Union is developing a dollar-backed stablecoin on Solana, with plans to launch in the first half of 2026. The CFTC has also outlined a path for allowing stablecoins as collateral in derivatives markets.

https://twitter.com/solana/status/1983222673841775098?s=20

Nevertheless, there are indications that disagreements over regulations might slow down how quickly stablecoins are adopted, but strong interest from consumers, businesses, and big financial companies is pushing stablecoins to play a bigger part in global payments.