Australia is taking steps to regulate stablecoins in the digital assets sector, with the Australian Securities and Investments Commission (ASIC) providing updates on their plans. During an event hosted by Blockchain Australia in Sydney, ASIC hinted at upcoming enforcement actions against unlicensed entities.
The Australian Treasury had previously announced plans to release draft legislation covering licensing and custody rules for crypto asset providers by the end of 2024. Now, the draft could potentially include regulations for stablecoins as well. Chris Adamek, director of the Australian Treasury’s digital asset policy unit, mentioned that the exposure draft for the reforms is expected to be released before the end of the year.
ASIC has been collaborating with regulators around the world, including the SEC, EU, Singapore, Malaysia, Hong Kong, and North America, to better understand the legal landscape for digital asset firms. Dr. Rhys Bollen, senior executive leader of digital assets at ASIC, emphasized the importance of staying compliant with the law and reviewing tokens and services regularly to align with current regulations.
ASIC has been actively monitoring and interacting with overseas regulators to stay updated on enforcement actions and legal precedents. Dr. Bollen highlighted the need for crypto entities to consult with legal counsel regularly to ensure compliance with the law. ASIC has filed multiple cases against crypto entities and is prepared to appeal recent judgments in favor of entities like Block Earner and BPS Financial Pty Ltd.
In recent times, ASIC has taken legal action against Binance Australia and eToro, while major banks in Australia have imposed restrictions on crypto activities citing concerns about scams. Blockchain Australia has rebranded as the Digital Economy Council of Australia (DECA) and will now include a membership category for banks to participate in shaping the regulatory framework for the digital assets sector. The industry is advised to stay informed about the evolving regulatory landscape and ensure compliance with the upcoming legislation to avoid regulatory scrutiny.