Australia’s financial-services regulator has issued updated guidance clarifying that a broad range of digital assets—including stablecoins, wrapped tokens, tokenised securities and dedicated digital-asset wallets—qualify as financial products under existing law.

The new position means providers of these products must hold an Australian Financial Services Licence (AFSL) if they offer services to retail clients.

In a statement on 29 October 2025 the regulator noted that the new guidance aligns with the government’s planned reforms to the digital-asset sector.

Commissioner Alan Kirkland said that the regulator’s view is that “many widely traded digital assets are financial products under current law … meaning many providers require a financial-services licence.” He added that licensing will ensure consumers receive appropriate protections under the law and allow regulatory action when misconduct leads to harm.

Recognising the burden of rapid compliance, the regulator has granted a no-action (‘grace-period’) approach until 30 June 2026 for firms that are preparing licence applications.

The regulator also announced an in-principle decision to provide targeted relief for certain distributors of stablecoins and wrapped tokens and for custodians of digital-asset financial products, designed to smooth the transition to the incoming legal regime.

The updated guidance follows an almost year-long consultation that began with a December 2024 paper setting out draft revisions to the regulator’s long-standing Information Sheet 225 (INFO 225) on digital assets.

The reform complements proposed legislation released by the Commonwealth Treasury in September 2025 covering digital-asset platforms and stablecoin payment facilities, which will require platform operators and custodians to obtain AFSLs and comply with enhanced governance and disclosure standards.

Industry bodies have welcomed the regulator’s clarification.

The national financial-services complaints body noted that firms providing services related to digital-asset financial products must now become members and lodge AFSL applications by the 30 June 2026 date.

According to legal-sector advisors, the updated guidance signals Australia’s intent to align with global regulatory trends and reduce uncertainty over compliance obligations.

Firms impacted include exchanges, wallet providers, token issuers and intermediaries who may now need to assess whether their offerings are financial products under the law and begin the licensing process.

While the regulator emphasises the guidance does not itself change the law, it underscores that existing licensing obligations can apply when digital-asset activities meet the legal definitions of dealing in or advising about financial products.

With Australia positioning itself as a credible jurisdiction for digital-asset innovation, the regulator and Treasury say the reforms are intended to underpin responsible growth, protect consumers and provide certainty to industry.

Firms are now urged to assess their exposure, engage with licensing paths and monitor the broader legislative reform timetable.