Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC), has introduced a licensing exemption for intermediaries distributing stablecoins issued by licensed entities.
Under the new ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631, intermediaries distributing a stablecoin by an Australian Financial Services (AFS) licensee will not need to hold their own separate AFS license, market license, or clearing & settlement facility license.
Key Details of the Exemption
- Applicable Stablecoin & Issuer: The exemption currently applies only to AUDM stablecoin issued by Catena Digital Pty Ltd, which is an AFS-licensed entity.
- What is Covered: Intermediaries distributing the token (but not issuing it) can now provide services such as general advice, dealing in the stablecoin, market making, and custody without needing extra licenses.
- Consumer Protection Requirements: Even under the exemption, distributors must provide retail clients with the issuer’s Product Disclosure Statement (PDS) to ensure transparency.
- Timeline: The exemption is temporary—it is set to expire on 1 June 2028, unless extended.
Why This Matters
- Reduces Regulatory Friction: The move lowers compliance burdens for crypto intermediaries, which have historically been high when distributing stablecoins.
- Boosts Market Participation: Facilitates easier distribution of AFS-issued stablecoins, encouraging innovation and broader adoption.
- Temporary Bridge to Full Framework: ASIC says this is a transitional measure while a more comprehensive regulatory regime for stablecoins is developed.
Potential Risks & Things to Watch
- Scope Limited Now: As of now, applies only to a single token (AUDM). Other stablecoin issuers will have to obtain AFS licences to benefit.
- Temporary Nature: The expiry date means intermediaries must plan ahead for when the exemption lapses or is replaced. AMBCrypto
- Maintaining Consumer Protections: Even though the licensing requirement is eased, disclosures like PDS are required—how strictly these obligations are enforced will matter.
Implications
- Crypto exchanges, brokers, and other platforms may find it easier and cheaper to list and distribute eligible stablecoins.
- This could lead to increased competition among stablecoin issuers, especially for those who secure AFS licences.
- Signals that Australia is trying to be more crypto-friendly, aligning with global regulatory trends to both foster innovation and ensure oversight.
