Australian Stablecoin Market Opens Up as ASIC Allows Licensed Intermediaries to Operate Without Extra Licences

ASIC Grants Licensing Relief To Stablecoin Distributors To Support Australian Market Growth

Australia is moving closer to mainstream stablecoin adoption as the Australian Securities and Investments Commission (ASIC) introduces a first-of-its-kind class exemption for intermediaries distributing digital currencies issued by licensed financial service providers.

Under the new ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631, intermediaries handling stablecoins from Australian Financial Services (AFS) licensed issuers no longer need separate AFS, market, or clearing and settlement facility licences, a relief set to last until 1 June 2028.

How The Relief Changes Stablecoin Distribution Rules

The instrument currently names Catena Digital Pty Ltd, issuer of the AUDM stablecoin, as the initial qualified entity but may extend to other licensed issuers over time.

The exemption allows intermediaries to provide services such as general advice, market making, dealing in—but not issuing—stablecoins, and custodial support without facing additional licensing hurdles.

Source: ASIC

ASIC emphasises that intermediaries must ensure clients have access to Product Disclosure Statements, maintaining transparency and consumer protection while lowering operational barriers.

Steve Vallas, CEO of Blockchain APAC, described the regulator’s move as “pragmatic,” noting it “fits within financial services law as a temporary transitional measure ahead of broader stablecoin reforms.”

He added,

“The relief doesn't change whether some stablecoins are financial products, but rather suspends secondary licensing layers for distributors where the issuer already holds an AFS licence.”

Bridging Commercial Viability Concerns In The Industry

The exemption responds to longstanding concerns over the commercial viability of stablecoin distribution.

Consultation Paper 381 revealed intermediaries faced significant compliance costs under existing licensing regimes, with several stakeholders warning that distribution could be unprofitable without regulatory relief.

By reducing licensing burdens while keeping issuer responsibilities intact, the measure offers a practical pathway for licensed stablecoin distribution during the transitional period leading up to the government’s proposed digital asset reforms.

Regulatory Enforcement Continues Amid Market Developments

ASIC’s supportive approach to licensed stablecoins sits alongside a robust enforcement drive targeting non-compliant crypto operators.

In April, authorities shut down 95 companies linked to international “pig butchering” schemes, following nearly 1,500 victim claims reporting $35.8 million in losses.

The regulator dismantles roughly 130 scam websites weekly, totalling over 10,000 malicious platforms, including 7,200 fake investment sites and 1,500 phishing operations.

Crypto ATM operators have also come under scrutiny, with AUSTRAC recently instructing Binance Australia to appoint external auditors after identifying weaknesses in anti-money laundering and counter-terrorism financing controls.

Queensland authorities charged four people over an alleged $190 million laundering scheme involving legitimate businesses before crypto conversion, restraining $21 million across 17 properties.

AUSTRAC plans to launch a public register to verify official exchange registration, aiming to prevent criminals exploiting dormant or inactive platforms.

Stablecoin Adoption Still Faces Banking Barriers

Despite the regulatory relief, Australian crypto users continue to encounter banking restrictions when depositing funds into exchanges.

A recent Binance survey of 1,900 respondents showed 58% called for easier deposits, while 22% reported switching banks for better crypto access.

Vallas pointed out that success in the local stablecoin market would be “demand-led,” highlighting that the level of interest from global players in complying with Australian regulations—either directly or through partnerships—will indicate whether AUD-backed stablecoins gain traction.

Relief Offers A Transitional Path Ahead Of Broader Reforms

ASIC’s temporary exemption aligns with broader government plans to implement a comprehensive digital assets framework, including a licensing regime for payment stablecoins.

The relief allows intermediaries to operate more efficiently while retaining consumer protections and supporting responsible innovation in Australia’s evolving digital asset sector.