Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC), is ramping up its efforts to close loopholes in the cryptocurrency and fintech industries. This comes as crypto adoption continues to rise globally, and the need for stricter oversight becomes more apparent.
ASIC’s Commitment to Stronger Crypto Oversight
In its Key Issues Outlook 2026, ASIC emphasized the risks posed by gaps in digital asset and fintech oversight. For years, parts of these industries operated in loosely regulated spaces, allowing some companies to bypass licensing protocols, particularly those incorporating artificial intelligence and digital payment systems. However, ASIC’s latest stance leaves no room for ambiguity — the era of lax regulation is coming to an end.
Companies leveraging unlicensed AI-powered financial advice tools or providing crypto platforms without adhering to standards are now under close scrutiny. ASIC plans to implement safeguards to ensure these entities operate within legal frameworks, thereby protecting consumers from misleading practices.
Protecting Australian Consumers
Australian consumers have been at a disadvantage compared to their counterparts in the EU, where regulations are more robust. ASIC acknowledges the potential benefits of certain platforms, such as offering better financial options, but stresses that the risks often outweigh the advantages without adequate oversight. The regulator has made it clear that having an AI policy is insufficient — companies must have clear mechanisms to shut down systems that could harm consumer interests.
Particular attention is being given to retirees. With more than $750 billion set to flow into retirement payouts over the next decade, inadequate financial advice poses a serious threat to this demographic. ASIC aims to mitigate this by ensuring higher regulatory standards in guiding retirees toward suitable investments.
Modernizing Financial Infrastructure
Australia’s market infrastructure is also under scrutiny following significant vulnerabilities revealed during a major outage in 2024. ASIC has pressed the Australian Securities Exchange (ASX) to deliver its new settlement system by mid-2026, replacing the outdated CHESS system. This development underscores a shift toward innovation coupled with responsibility — the era of launching products first and dealing with issues later is over.
What This Means for Crypto Regulation
Crypto adoption in Australia is at an all-time high, with nearly 32% of Australians owning digital assets in 2025 compared to just 12% six years ago. However, as the market grows, so do regulatory challenges. ASIC’s balanced approach includes easing rules for approved stablecoins — such as AUDM — while clamping down on unlicensed participants.
These moves align with global trends. For instance, the U.S. has already begun tightening its crypto policies following the introduction of the GENIUS Act. Globally, this creates a more competitive environment around the development and adoption of stablecoins.
Final Thoughts
With crypto now becoming an integral part of Australia’s regulated financial ecosystem, the window for companies to operate outside legal guidelines is closing quickly. For businesses and investors, staying informed about these regulatory changes is crucial to ensure compliance and secure growth in this ever-evolving landscape.
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