Australia’s top securities regulator is shifting the crypto policy debate: focus on what digital assets do, not what blockchain technology they run on.
Economic Function First, Technology Second
Speaking at a recent event, ASIC senior official Bollen said blockchain assets perform the same fundamental roles as traditional financial products. “The distinction is technological infrastructure, not the core financial functions,” he noted. He urged frameworks to prioritize economic purpose: tokens that qualify as securities should fall under capital markets rules, while stablecoins used for payments should be governed by payment services law. The core question, he said, is “What role does a digital asset play within the financial system?” He reminded that the financial sector has adapted to technological change before without sacrificing consumer protection or market integrity.
Digital Assets Framework Bill: Fitting Into Existing Law
Australia is not creating a separate crypto regime. The forthcoming Digital Assets Framework Bill amends the Corporations Act 2001 to extend oversight to digital asset platforms, integrating them into existing financial regulation. ASIC's published Guidance 225 clarifies that digital assets can be classified as securities, derivatives, managed investment schemes, or payment instruments under current law. This functional approach aims to protect consumers while allowing innovation.
Under the revised guidance, most stablecoin issuers will need licenses, as these tokens typically qualify as non-cash payment instruments or managed investment schemes in Australia. ASIC said transitional measures will ease entry for some stablecoin and wrapped token providers.
Risks Lie in Intermediaries, Not the Tech
Bollen emphasized that crypto risks often stem from intermediaries—trading platforms, custodians, and lending providers—rather than from the technology itself. He stressed that how these services handle client assets, operational processes, and disclosure is where the real regulatory focus should be.