ob体育 today released Consultation paper 381 Updates to INFO 225: Digital Assets: Financial Products and Services (CP 381) outlining proposals to update Information Sheet 225 Crypto Assets (INFO 225).
To provide greater clarity about the current law, ob体育 has proposed a range of updates to INFO 225, including adding 13 practical examples of how the current financial product definitions apply to digital assets and related products.
ob体育 Commissioner Alan Kirkland said, 鈥榃e want to promote the growth of responsible financial innovation while ensuring consumer protection. A well-regulated financial system benefits everyone in the community as it supports consumer confidence, market integrity and facilitates competition and innovation.
鈥楢ustralia鈥檚 financial services regulatory regime is broad and technology neutral. Many digital assets and related products are financial products under the current law. Stakeholders have been calling for greater clarity and in response, we are releasing our draft updated guidance.
鈥榃e encourage all stakeholders to engage with the consultation process. We recognise that industry will need some time to consider and act on our updated guidance, so we are also consulting on a proposed transitional approach.鈥�
Generally, ob体育鈥檚 existing approach to financial services licences will apply to digital assets. For example, whether an applicant is proposing to deal in traditional securities or securities based on a digital asset platform, the same licensing regime applies.
CP 381 seeks feedback on:
- ob体育鈥檚 updated guidance in INFO 225, including the worked examples,
- the application of the existing Australian Financial Services (AFS) licence processes, ob体育 guidance and standard conditions to digital asset businesses,
- practical licensing issues for wrapped tokens and 鈥榮tablecoins鈥�, issues arising from the potential transition to the Government鈥檚 proposed digital asset platform and payment stablecoins regimes, and consideration of potential regulatory relief, and
- a potential class 鈥榥o action鈥� position for digital asset businesses that are in the process of applying for or varying an AFS licence, Australian Markets Licence or Clearing and Settlement Facility licence.
ob体育 seeks the feedback on the proposed updated INFO 225 and the issues raised in CP 381 by 5pm on 28 February 2025. Details on responding can be found in the consultation paper.
ob体育 intends to publish a final version of the updated INFO 225 in mid-2025, after considering feedback received through the consultation process.
ob体育 will continue to use its full range of regulatory and enforcement tools, such as guidance, licensing, compliance and enforcement action, to protect consumers and uphold market integrity in the digital asset sector.
Downloads
- Consultation paper 381 Updates to INFO 225: Digital Assets: Financial Products and Services
Background
CP 381 consultation package is aimed at all firms involved in digital assets, including:
- existing financial services and financial markets businesses, including those exploring the application of blockchain technology to existing financial products and real-world assets (e.g. tokenisation),
- new digital asset businesses,
- brokers and intermediaries,
- professional advisers to the above businesses.
ob体育 first published INFO 225 in September 2017, with updates made in 2018, 2019 and 2021.
ob体育鈥檚 position continues to be that many digital assets are financial products under the current law.
CP 381 is aligned to and supportive of the Government鈥檚 broader work in relation to the proposed payment services reform and digital asset facility reforms.
ob体育's MoneySmart website has information for investors on the risks of聽.