TLDR
- Australia’s financial regulator will classify crypto assets based on their economic function rather than technology.
- ASIC said tokenized securities will fall under existing securities laws while stablecoins will follow payment services rules.
- The Digital Assets Framework Bill 2025 will require Digital Asset Platforms to obtain an Australian Financial Services Licence.
- Companies that breach the new rules could face penalties of up to 10% of annual turnover.
- Digital asset firms must register with AUSTRAC from March 31, 2026, and implement anti-money laundering programs.
Australia’s corporate regulator has set out a clear plan to regulate crypto under current financial laws. ASIC said it will classify digital assets by economic function rather than technology. The agency also confirmed new licensing and compliance deadlines for 2026.
Australia Sets Functional Test for Crypto Assets
Rhys Bollen spoke at the Melbourne Money & Finance Conference on March 11, 2026. He said ASIC will regulate crypto assets based on their economic substance. He described blockchain as “new plumbing” for existing financial services.
He stated that tokenized products that resemble securities will face securities laws. He added that stablecoins will fall under payment services legislation. He said firms cannot rely on technical language to avoid compliance.
ASIC will focus its enforcement on intermediaries rather than tokens. The regulator named custody providers, trading platforms, and lending services as priorities. It said these entities create the highest risk of consumer harm.
Bollen also addressed claims of decentralization as a defense. He said obligations apply when identifiable parties influence a protocol’s design. He stated that decentralization does not remove legal responsibility.
New Licensing and Compliance Rules Take Effect in 2026
The Digital Assets Framework Bill 2025 is moving through parliament. Lawmakers expect the bill to pass in 2026. The bill will require Digital Asset Platforms to hold an Australian Financial Services Licence.
Tokenised Custody Platforms will also need an Australian Financial Services Licence. The framework aligns crypto platforms with traditional financial services firms. Companies that breach the law may face penalties of up to 10% of their annual turnover.
ASIC has extended a sector-wide no-action position until June 30, 2026. The extension applies to firms working toward proper licensing. A class relief measure from December 2025 covers certain stablecoins and wrapped tokens.
Digital asset businesses must also register with AUSTRAC from March 31, 2026. They must establish formal anti-money laundering programs. Smaller operators must prepare for new reporting and monitoring duties.
However, the framework exempts some small platforms from licensing. Firms holding less than A$5,000 per customer and under A$10 million in annual transactions qualify. These thresholds limit the scope of new obligations.
The government has projected A$24 billion in annual productivity gains. Officials have cited this estimate during the legislative process. Lawmakers have relied on the figure to support the reform agenda.
Industry responses have varied across the sector. Swyftx CEO Jason Titman has questioned broad regulatory powers in the bill. He has called for tighter definitions and clearer limits on discretion.
Bollen has also drawn criticism in past remarks. He compared Bitcoin to cigarettes used as prison currency. Critics argued that the analogy understated the sector’s role in payments.
Some firms have raised concerns about de-banking practices. Banks have often ended relationships with crypto companies due to regulatory uncertainty. The new framework aims to provide licensed firms with a clearer legal status.
The no-action position remains in place until June 30, 2026. AUSTRAC registration requirements begin on March 31, 2026. Parliament is expected to finalize the bill later in 2026.
