ASIC's Info 225 Update proposal (2025)
Consultation Ends – Crypto Industry Frozen in Anticipation
ASIC proposed an updated version of Information Sheet 225 (INFO 225).
Crypto to be regulated under existing financial laws.
Stablecoins and wrapped tokens may become regulated financial products.
Transitional "no-action" period planned to help crypto businesses comply.
Updated guidelines expected Q2 2025.
On 4 December 2024, the Australian Securities and Investments Commission (ASIC) released Consultation Paper CP 381, proposing significant updates to INFO 225—the key regulatory guidance concerning digital and crypto-assets as financial products.
Recognising the rapid evolution and growth of digital asset markets, ASIC’s proposed update aims to clarify how existing financial service regulations apply to various digital assets. The proposed changes include shifting terminology from "crypto-assets" to the broader category of "digital assets," acknowledging diverse products like tokenised securities, NFTs, stablecoins, and other emerging digital products.
A critical component of ASIC's proposal is the addition of detailed hypothetical examples designed to illustrate clearly when a digital asset might be classified as a financial product under current laws. These examples cover scenarios ranging from NFTs used in games and memberships, yield-bearing stablecoins, to tokenised real-world assets like gold and securities.
Significantly, ASIC is considering special provisions for wrapped tokens and stablecoins, examining their potential status as derivatives or non-cash payment facilities, and is actively seeking industry feedback to gauge the potential business implications of such classifications.
Additionally, ASIC proposes a transitional "no-action" position to facilitate compliance, offering digital asset businesses currently operating without licenses time to adapt and secure the necessary regulatory approvals.
ASIC has invited industry feedback until 28 February 2025, aiming to finalize and release updated INFO 225 guidance by the second quarter of 2025.
In related commentary, Dr Oleksii Konashevych from @Blockchain State Youtube Channel, an expert in blockchain technologies and financial innovation, provided insightful analysis on the broader impacts of financial market regulations. In a recent YouTube video, Dr Konashevych linked Australia's housing affordability crisis to overly regulated financial markets that push investment funds disproportionately towards residential real estate, resulting in economic imbalance. He highlights how the residential property sector absorbs investment capital, restricting necessary financial flows into other vital economic sectors.
Dr Konashevych’s thought-provoking discussion underscores the significance of balanced financial regulation, suggesting that clearer digital asset guidance—like ASIC’s CP 381—could play a crucial role in broadening Australia's investment landscape and mitigating economic imbalance.
Watch Dr Konashevych’s full analysis here:
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