ASIC Announces Stablecoin Legislative Exemption Across Australia

ASIC (Australian Securities and Investments Commission) has announced that it will be looking to ease regulatory restrictions on digital asset operations across Australia, favouring Stablecoin issuers.

This week, the commission released a publication of their exemptions for entities participating in the 'secondary distribution' of stablecoins, as long as the underlying issuer has an approved AFS license.

The document identifies the qualifying entities as 'Distributors', defining them as:

(a) a Distributor who operates a financial market only because a specified stablecoin is a financial product does not need to have an Australian market licence;

(b) a Distributor who operates a clearing and settlement facility only because a specified stablecoin is a financial product does not need to have an Australian CS facility licence;

(c) a Distributor who provides certain financial services in relation to a specified stablecoin does not need to have an Australian financial services licence.

And it also outlines the following services and operations exempt:

(a) providing general advice in relation to a Named Stablecoin;

(b) dealing in (other than by issuing) a Named Stablecoin;

(c) making a market for a Named Stablecoin;

(d) providing a custodial or depository service in relation to a Named Stablecoin.

These include the Australian market license, the CS facility license and financial service license (sections 6-8), however, distributors still need to ensure they provide a clear Product Disclosure Statement to any retail clients re the underlying stablecoin and issuer(s).