exemption<\/a> is an \u201cimportant step in facilitating growth and innovation in the digital assets and payments sectors,\u201d and only applies to stablecoins issued by firms that have acquired the Australian financial services license.<\/p>\nHow does ASIC\u2019s exemption impact stablecoin intermediaries?<\/h1>\n
The exemption means crypto exchanges and other intermediaries can save on compliance costs and offer access to select regulated stablecoins without the burden of extra licensing.<\/p>\n
\u201cASIC is committed to supporting responsible innovation in the rapidly evolving digital assets space, while ensuring important consumer protections are in place by having eligible stablecoins issued under an AFS licence,\u201d the regulator said.<\/p>\n
So far, only Catena Digital, an Australian stablecoin issuer, has been granted an AFS license, and therefore, its Australian dollar-denominated stablecoin, AUDM, is the first to qualify under the new exemption.<\/p>\n
However, intermediaries that offer AUDM will be required to provide its product disclosure statement to clients, to ensure transparency and allow locals to make informed decisions.<\/p>\n
ASIC also plans to extend this relief to additional stablecoin issuers as they become licensed.<\/p>\n
As of now, the relief will take effect once it is registered on the Federal Register of Legislation, which is the official step required for it to become legally binding.<\/p>\n
<\/p>\n
ASIC set to formalize crypto rules<\/h2>\n
The exemption is a direct response to concerns raised during ASIC\u2019s consultation on crypto regulation, which was outlined in Consultation Paper 381, which the regulator published late last year.<\/p>\n
\u201cMany digital assets and related products are financial products under the current law. Stakeholders have been calling for greater clarity, and in response, we are releasing our draft updated guidance,\u201d ASIC commissioner Alan Kirkland said at the time.<\/p>\n
In that paper, ASIC proposed several updates to its digital assets guidance, INFO 225, to better accommodate digital assets, and included practical examples of how existing financial product definitions could apply to stablecoins, wrapped tokens, exchange-native tokens, and even meme coins.<\/p>\n
ASIC is currently finalizing the updates and said it would publish the revised INFO 225, along with key themes and public submissions from the consultation, in the coming weeks.<\/p>\n
Simultaneously, the regulator said it was \u201cworking closely\u201d with the country\u2019s Treasury department to develop a stablecoin framework.<\/p>\n
<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"
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