Australia adds cryptocurrency regulatory loopholes to its 2026 risk list.

The Australian Securities and Investments Commission (ASIC) has listed cryptocurrency regulatory loopholes as a key risk for 2026. The agency noted that rapidly growing crypto, payments, and artificial intelligence companies operating on the fringes of regulation could expose consumers to unlicensed advice and misleading practices. This warning comes as Australia moves forward with the Companies Act Amendment (Digital Assets Framework) Bill 2025, which aims to establish the country's first regulatory framework for companies holding clients' digital assets, requiring such platforms to hold an Australian financial services license. ASIC stated that while some companies are legally operating outside existing regulations, others are intentionally circumventing them, exacerbating regulatory uncertainty. (Decrypt)