I. Policy Content: Clearly define digital assets as "financial products", and establish a transition period and regulatory exemptions

 

The Australian Securities and Investments Commission (ASIC) released the updated Digital Assets on October 29, 2025. The "Financial Products and Services Information Sheet" (INFO 225) clearly stipulates that multiple types of digital assets are regarded as "financial products" under the current legal framework and has published corresponding transitional support and exemption policies.

According to the new guidance document, the following digital asset products have been officially included in the regulatory scope of financial products:

 

•Stablecoins

• Wrapped Tokens

•Tokenised Securities

• Digital Asset Wallets

 

This means that relevant service providers need to apply for an Australian Financial Services Licence (AFS Licence) in accordance with the Companies Act and accept regulatory requirements such as investor protection, information disclosure and code of conduct.

 

To ensure a smooth transition, ASIC announced:

From now until June 30, 2026, a "no-action position" will be imposed on relevant digital asset enterprises, and compliance operation behaviors that have not yet completed license applications will not be pursued for the time being.

It is proposed to provide regulatory relief to some distributors of stablecoins and wrapped tokens as well as digital asset custodians to facilitate a smooth transition of the market to the new digital asset and Payment (DAP) system proposed by the government.

The public can submit feedback on the draft relief instruments to ASIC before November 12, 2025.

ASIC also pointed out that although universal enforcement measures will not be taken for the time being, enterprises involved in serious consumer damage or systemic misconduct will still be held accountable in accordance with the law.

 

Ii. Interpretation by the chivoy lawyers Team (Personal Opinion

The policy aims to balance regulation and innovation and strengthen investor protection

Alan Kirkland, the ASIC commissioner, stated in the announcement that distributed ledger technology and tokenization are reshaping the global financial landscape. This update of the guideline aims to provide clear legal guidance for enterprises that wish to innovate and develop in Australia, enabling them to innovate with peace of mind in a defined regulatory environment, while offering investors the same level of protection as traditional financial products.

 

The policy goals can be summarized in three points:

 

(1) Strengthen the protection of investors' rights and interests - ensure that digital asset investors receive equal protection within the legal framework;

(2) Provide regulatory certainty - clearly define when digital assets constitute "financial products" to reduce compliance uncertainty;

(3) Encourage responsible innovation - Through temporary exemptions and transitional support, facilitate the sustainable development of blockchain and fintech enterprises.

 

2. The regulatory system is moving towards the operational stage

ASIC released INFO 225 as early as 2017 and revised it several times in 2018, 2019 and 2021.

In December 2024, ASIC issued Consultation Paper 381 (CP 381), seeking opinions on when digital assets constitute financial products, the scope of application of AFS license obligations, and the temporary exemption mechanism for stablecoins and wrapped tokens.

The updated version of INFO 225 released this time has incorporated the above-mentioned consultation feedback and is in line with the upcoming Digital Asset Platform (DAP) reform plan of the Australian government. This guiding document provides regulatory basis and technical support for future digital asset legislation by clearly defining the boundaries of "financial products".

 

3. Support innovative projects and systematic compliance transformation

In the announcement, ASIC mentioned that it has provided "substantial regulatory support" in multiple projects this year, including:

• Assist the Reserve Bank of Australia (RBA) in carrying out Project Acacia - researching the wholesale tokenized asset market;

• Provide distribution convenience for some stablecoin products issued within the license framework.

These measures reflect ASIC's continuous commitment to promoting "Responsible Innovation" : to prevent financial risks while creating a stable and transparent policy environment for innovative enterprises.

 

4. Clear regulation boosts market confidence

This update of INFO 225 is widely regarded by the industry as an important signal that Australia's digital asset regulation has entered a mature stage.

For enterprises, the clarification of regulatory boundaries helps accelerate compliance layout and international cooperation.

For investors, after digital assets are incorporated into the financial product system, the information disclosure and protection mechanisms will be significantly enhanced.

For the regulatory authorities, the transitional mechanism strikes a balance between innovation and risk control, which helps to achieve the executability and sustainability of policies.

Overall, ASIC's move this time not only lays a legal foundation for the Australian digital asset industry but also provides a reference sample for compliance innovation on a global scale.

 

5. Response Strategies of Chinese Investors

(1) Advance compliance planning - If an enterprise is involved in token, on-chain finance or digital asset custody, it should promptly assess whether the business falls under "financial products" and formulate a licensing or cooperative licensing strategy.

(2) Pay attention to the exemption policy window - take advantage of the "regulatory grace period" before 2026 to complete business adjustments and structural reorganizations under the guidance of compliance consultation.

(3) Strengthen cross-border legal coordination - Align anti-money laundering (AML), data security and tax transparency requirements under the dual legal jurisdictions of China and Australia.

(4) Establish a continuous compliance mechanism - Before the DAP law is officially implemented in the future, form a compliance operation system of "self-inspection + annual review + external consultant review".

 

This regulatory update in Australia marks a new stage in the digital asset market where "compliance and innovation go hand in hand".

 

For Chinese investors and enterprises that hope to develop in Australia for the long term, establishing a compliance system that meets local regulatory requirements as soon as possible will be the key to whether they can steadily participate in the international digital financial market in the future.