Australia Aims to Regulate Crypto Start-ups with Mandatory Financial Services Licences
ASIC commissioner Alan Kirkland said that many crypto asset firms in Australia will need licensing, as several crypto assets are considered financial products under current laws.

Australia is set to introduce new regulations requiring the crypto industry to obtain financial services licenses under the Corporations Act.
On Monday, Australian Securities and Investments Commission commissioner Alan Kirkland said at an AFR Digital Assets Summit that many crypto-asset firms in Australia will need to be licensed. He stated that ASIC considers several crypto assets as financial products under existing laws.
ASIC’s regulatory framework focuses on “financial products,” which involve financial investments, risk management, or non-cash transactions. However, certain aspects of crypto don’t entirely align with this model. This creates uncertainty about whether specific crypto structures require licensing.
Kirkland confirmed to Cryptonews that ASIC will release new draft guidance soon, and plans to invite industry feedback on these updates.
“Millions of Australians now hold crypto-asset investments and ASIC wants to make sure they have access to important consumer protections provided by the current regulatory regime” he said.
Crypto Developers Bypass Licensing, Australia to Clarify Token Rules Amid Regulatory Concerns
Many crypto developers have not obtained Australian Financial Services Licenses (AFSLs), following legal advice. This decision is based on the belief that their investment products don’t fall under the purview of current laws, AFR reported.
To address that, ASIC plans to update guidance by November. This will clarify the classification and treatment of specific crypto tokens representing digital ownership rights and related products.
Further, Kirkland noted ASIC’s concern over potential consumer harm and market misconduct. He stated that licensing will help reduce risks, build consumer trust and protect market integrity.
ASIC Tightens Crypto Oversight
ASIC has intensified its enforcement efforts, signaling a heightened scrutiny over the crypto sector. The agency recently claimed that Kraken did not properly educate its Australian clients on the risks of margin trading, resulting in considerable financial losses for customers.
Further, in August, ASIC initiated legal action against ASX , accusing the market operator of mismanaging the blockchain-based CHESS replacement project.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Buyer Battles Begin as BlockDAG Offers 25M BDAG Daily! LINK Price Prediction Leans Toward $25 & TRX Crypto Shows Strength
Catch the next big crypto as LINK price prediction targets $25, TRX crypto shows strength & BlockDAG drops Buyer Battles offering 25M BDAG daily fueling buying frenzy.Chainlink Price Prediction Targets $25 BreakoutTRX Crypto Draws Volume After USDT Mint & ETF HypeBlockDAG Launches Daily Buyer BattlesStrong Moves Are Happening Live

Digital Commodity Capital Adds XRP to Its Portfolio, Bolstering Institutional Interest
BlockDAG Drops Price Pre-Reveal as Fartcoin Gains Traction

XRP Price Target Debated; SHIB Burns and Unstaked Gains

Trending news
MoreCrypto prices
More








