ASIC Tightens Rules for Digital Assets and Custodians Ahead of Treasury Crypto Bills

Highlights:

• ASIC tightens rules to raise investor protection and extend oversight to global digital asset providers.
• The new guidance will help firms understand financial laws and prepare for Australia’s upcoming crypto licensing reforms.
• The treasury and ASIC are moving closer to a unified framework for exchanges, stablecoin issuers, and custodians.

The Australian Securities and Investments Commission (ASIC) has released an updated version of Info Sheet 225. The new guidance explains how current financial service laws apply to digital asset businesses. It also replaces the term “crypto assets” with the broader term “digital assets.” This change aims to include coins, tokens, and other virtual products under one framework.

🟠 Crypto News

Australia’s financial regulator expands oversight of crypto ahead of landmark licensing laws. This update adds new examples and custody rules, shifting from proposals to enforceable guidelines to boost market integrity. ⚖️ pic.twitter.com/q9PHKfklYt

— Nexus News (@Nexus_News_AI) October 29, 2025

The revision comes as Australia prepares for the Treasury’s upcoming Digital Asset Platforms Bill and Payment Service Providers Bill. These bills will introduce official licensing for exchanges, custody providers, and stablecoin issuers by 2026. ASIC said the goal is to help companies understand their obligations and prepare before the new rules take effect.

The new guide includes 18 examples instead of 13, demonstrating how various digital assets can be subject to the Corporations Act. It consists of yield-bearing tokens, staking services, and NFT gamification. The regulator also added provisions about custody, fund management, and relief transition to companies joining the licensing system.

A new survey by Swyftx claims that crypto ownership in Australia is not growing. The exchange registered stagnant growth in the ownership of digital assets and a decreasing trust in cryptocurrencies. ASIC feels that more regulation would serve to rebuild confidence in the local market and bring more certainty in doing business.

ASIC Tightens Rules Around Investor Protection Measures

The regulator has come up with tougher custody, compliance, and investor protection rules. The regulator has now stipulated that firms that hold client assets must have at least A$10 million ($6.5 million) of net tangible assets. This standard applies to both domestic and international organizations that provide services to Australian clients. It is in line with the requirements of traditional custodians under Regulatory Guide 166.

🇦🇺 Australia has drafted a new law to regulate digital asset platforms by extending financial services rules to crypto.

The bill aims to protect consumers, provide clarity for businesses, and align the country with international peers in digital finance.

Draft legislation: 👇… pic.twitter.com/OHtyzG3dvv

— Crypto Coin Show (@CryptoCoinShow) September 26, 2025

The commission also warned offshore and decentralized platforms that local laws apply if they target Australian customers. ASIC stated that no company can avoid compliance by operating from abroad. The regulator added that it will take enforcement action against platforms that ignore these obligations.

ASIC has also provided flexibility to professionals who are already in the crypto space in order to simplify the transition. Under the Australian Financial Services (AFS) system of license, experienced persons are eligible to become responsible managers. This move allows skilled blockchain professionals to meet licensing standards even without traditional finance backgrounds.

Earlier this year, ASIC provided class relief for intermediaries distributing stablecoins from licensed issuers. That relief was designed as a temporary measure while the Treasury develops its stablecoin framework. The regulator is now keen on enhancing consumer protection measures without compromising innovation in the industry.

Coordination with Regulators Shapes Australia’s Digital Asset Roadmap

Another key point of the ASIC update is collaboration with other government agencies, such as the APRA, ATO, the ACCC, and the Reserve Bank of Australia. Together, they will oversee how digital assets fit into Australia’s financial system.

The regulator added new guidance for fund managers and exchange-traded product issuers. These sections explain expectations around custody, disclosure, and risk management for products offering crypto exposure. ASIC observed that organizations ought to be ready to fulfill the existing financial service requirements as the Treasury completes its overall legislation on licensing.