Australia Eases Licensing Rules for Stablecoin Intermediaries Until 2028

Highlights:

• Australia has eased licensing rules as AUDM stablecoin becomes the first to qualify under the ASIC exemption.
• The exemption allows licensed intermediaries to distribute stablecoins without extra financial licenses.
• ASIC has linked the relief to industry feedback as it continues strict enforcement against scams.

The Australian Securities and Investments Commission has provided a specific exemption enabling intermediaries to sell licensed stablecoins without any further licensing conditions. The exemption will only be applied to stablecoins issued by companies that already have an Australian Financial Services (AFS) license. This step will lower compliance expenses on intermediaries. At the same time, it will ensure that stablecoins will be subject to tight regulation.

Australian Securities and Investments Commission (ASIC) has announced a regulatory exemption for stablecoin intermediaries, allowing them to distribute stablecoins issued by licensed Australian Financial Services (AFS) providers without needing a separate AFS, market, or clearing…

— Wu Blockchain (@WuBlockchain) September 18, 2025

Catena Digital, an Australian stablecoin issuer, is the first company to benefit under this framework. Its Australian dollar-pegged stablecoin, AUDM, qualifies because the firm holds an AFS license. Other issuers may gain similar access as soon as they secure the necessary licenses.

Under the exemption, intermediaries that distribute AUDM must provide clients with a Product Disclosure Statement. This requirement ensures transparency and helps customers make informed choices before using stablecoins. The relief becomes effective once registered on the Federal Register of Legislation and remains in place until June 1, 2028.

ASIC said that the exemption is an important move toward striking the right balance between innovation and consumer protection. The regulator emphasized that distribution, as it is under current financial regulations, would only be limited to stablecoins issued under an AFS license. Authorities also mentioned that the interim relief will assist the intermediaries to work smoothly as wider amendments are implemented.

Australia Eases Licensing Rules to Address Industry Concerns

ASIC introduced the exemption after receiving strong feedback from its consultation on digital assets, published in Consultation Paper 381 last year. Most stakeholders claimed that the current licensing standards imposed excessive compliance expenses, rendering the distribution of stablecoins commercially impractical. They demanded greater transparency regarding the application of financial product definitions to digital assets, such as stablecoins, wrapped tokens, and exchange-native tokens.

ASIC, in turn, developed the class relief to eliminate barriers but kept high standards of protection. The regulator affirmed that it will revise its digital assets guidance, INFO 225, to indicate how the existing regulations apply to tokens and coins. The updated guidance will include practical examples to help exchanges and distributors understand how they should comply with rules. ASIC expects to release the updated version, along with feedback received from the consultation, in the coming weeks.

The exemption specifically removes the need for intermediaries to obtain separate licenses for financial market services, clearing and settlement facilities, or custodial services when distributing licensed stablecoins. Covered services include general advice, market making, and depositary functions.

Industry participants confirmed during the consultation that the lack of relief would block stablecoin distribution altogether. Several noted that the exemption provides a workable bridge until the government introduces new legislation on payments and digital assets. ASIC added that the temporary measure would provide companies with some certainty on a broader scale of reform by the Treasury through June 2028.

ASIC Enforcement Actions Provide Broader Context for Crypto Oversight

The relief arrives during a period of increased enforcement by the ASIC. Authorities dismantled 95 firms tied to fraud schemes earlier this year, after nearly 1,500 complaints linked to $35.8 million in losses. ASIC also disables more than 100 scam websites each week, including fake investment platforms and phishing operations.

Australia’s ASIC just dismantled 95 shell firms tied to #crypto romance scams. $35M lost across 14 countries. Don’t fall for fake love + fake profits. pic.twitter.com/PyIy8aWV7Z

— Koinpr (@koinpr) April 8, 2025

At the same time, AUSTRAC ordered Binance Australia to appoint external auditors after raising concerns about its anti-money laundering measures. Regulators also contacted hundreds of inactive exchange operators, warning of possible deregistration if they fail to exit the market voluntarily.