On 29 October 2025, the Australian Securities and Investments Commission (ASIC) published updated guidance clarifying the application of existing financial services laws to digital assets, reinforcing investor protection while supporting innovation in Australia’s rapidly developing digital economy. The update extends ASIC’s Information Sheet 225 Digital Assets: Financial Products and Services (INFO 225) and confirms transitional support measures ahead of proposed digital asset law reforms. Stablecoins, wrapped tokens, tokenised securities, and digital asset wallets are confirmed as financial products under existing law. ASIC also introduced a sector-wide no-action position effective until 30 June 2026 and proposed targeted relief for digital asset distributors and custodians to ensure a smooth regulatory transition. The updated guidance is positioned to align with the Australian Government’s forthcoming Digital Assets and Payments (DAP) legislative framework, providing legal certainty and operational confidence to firms across the market.
ASIC’s announcement reiterates that many widely traded digital assets qualify as financial products under current law, and this classification will persist under the Government’s forthcoming reforms. The framework ensures that providers engaging in such activities must hold an Australian Financial Services (AFS) licence, guaranteeing consumer protection and enabling regulatory intervention against misconduct. ASIC also confirmed it will consider the current no-action position when assessing historical conduct but will continue enforcement against egregious cases involving systemic harm or fraud.
Transitional Support and No-Action Relief
“We recognise that firms will need time to consider the updated guidance and apply for licences, so ASIC has granted a sector-wide no-action position until 30 June 2026.” ASIC outlined that this position provides temporary regulatory flexibility as the industry adjusts to the revised framework. It also proposed relief instruments for stablecoin and wrapped token distributors, and custodians of digital assets categorised as financial products. Public feedback on these instruments is invited until 12 November 2025. The regulator emphasised that these transitional measures are designed to maintain market stability while encouraging responsible compliance.
Consultation Process and Stakeholder Engagement
ASIC’s updated guidance reflects themes emerging from public submissions to Consultation Paper 381 Updates to INFO 225: Digital Assets: Financial Products and Services (CP 381), released in December 2024. The consultation sought views on when certain digital assets constitute financial products, the licensing requirements applicable to digital asset businesses, and possible relief mechanisms during the transition to the new DAP and payments regime. ASIC confirmed that stakeholder feedback directly informed both the no-action position and the inclusion of additional examples within the updated guidance.
Scope and Target Audience
Originally issued in September 2017 and updated in 2018, 2019, and 2021, INFO 225 is directed at all firms involved in digital asset activities. These include established financial services and markets businesses exploring blockchain applications, new digital asset ventures, intermediaries and brokers, and professional advisers assisting them. The revised guidance explicitly applies to activities such as tokenisation of real-world assets, stablecoin issuance, and digital custody arrangements, each of which now falls under financial product regulation.
Regulatory Context and Alignment with DAP Reforms
The updated INFO 225 complements the Australian Government’s proposed DAP reforms by providing immediate interpretive clarity on what constitutes a financial product or service under existing law. ASIC indicated that the guidance also builds on practical relief measures introduced earlier in 2025, including exemptions facilitating the Reserve Bank of Australia’s Project Acacia on wholesale tokenised asset markets and distribution relief for licensed stablecoin issuers.
ASIC Commissioner’s Statement
“Distributed ledger technology and tokenisation are reshaping global finance. ASIC’s guidance provides the regulatory clarity that firms have been calling for to innovate confidently in Australia,” said ASIC Commissioner Alan Kirkland. He further stated, “Many widely traded digital assets are financial products under current law and will remain so under the Government’s proposed law reform meaning many providers require a financial services licence. Licensing ensures consumers receive the full suite of protections under the law and allows ASIC to act when poor practices lead to harm.”
