ASIC’s new stablecoin distribution exemption allows intermediaries to distribute AFS‑licensed stablecoins—starting with AUDM—without holding separate AFS or market licences, providing temporary regulatory relief until a longer‑term payment stablecoin licensing framework is implemented.
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Relief for intermediaries: no separate AFS licence needed to distribute eligible stablecoins.
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Exemption currently applies only to Catena Digital’s AUDM and is temporary until June 1, 2028.
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Applies to market‑making, general advice, dealing (not issuing) and custody services for eligible stablecoins.
ASIC stablecoin distribution exemption explained: temporary relief for intermediaries distributing AFS‑licensed stablecoins—learn what it covers and how it affects Australian crypto firms.
Australia’s financial regulator has granted licensing exemptions for intermediaries distributing AFS-licensed stablecoins, starting with AUDM.
What is the ASIC stablecoin distribution exemption?
The ASIC stablecoin distribution exemption is a temporary regulatory instrument that removes the requirement for intermediaries to hold separate AFS, market or clearing and settlement facility licences when they distribute eligible stablecoins issued by Australian financial services (AFS) licensees.
Which stablecoin does the exemption cover today?
Today, the exemption applies only to Catena Digital Pty’s AUDM stablecoin. ASIC has indicated the scope may expand as more issuers obtain AFS licences. The measure is time‑limited and set to expire on June 1, 2028, unless repealed earlier.
ASIC published the exemption as the ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631. The relief covers a range of secondary distribution activities, including providing general advice, making markets, dealing in (but not issuing) the stablecoin and offering custodial services for eligible stablecoins.
The exemption covers a range of financial services. Source: ASIC
How does the exemption affect intermediaries and market participants?
Intermediaries that distribute an eligible AFS‑issued stablecoin can now operate without obtaining separate AFS or market licences for those specific distribution activities. This reduces compliance costs and short‑term regulatory friction while broader licensing reforms for payment stablecoins remain under development.
ASIC framed the instrument as a targeted, temporary bridge to a future licensing framework for payment stablecoins. The regulator emphasised that the exemption applies only where the stablecoin is classified as a financial product under the Corporations Act and is issued by an eligible AFS licence holder.
Why did ASIC introduce this temporary relief?
Public consultation highlighted that intermediaries faced burdensome compliance costs under existing licensing rules during a transition to a new stablecoin regime. The exemption is intended to support responsible innovation while keeping consumer protections by ensuring stablecoins are issued under an AFS licence.
What are the immediate market implications?
Short term, the relief may lower onboarding and operating costs for distributors, encourage wider distribution of AUDM, and reduce banking and compliance friction. However, the exemption is not a permanent regulatory change; participants should prepare for the proposed payment stablecoin framework and possible extension or repeal of the relief.
Have banks and consumers seen changes in crypto access?
Banking friction persists in Australia despite regulatory steps. A recent Binance survey of 1,900 respondents found 58% want easier deposits and 22% switched banks for better crypto access. These frictions remain relevant as regulatory adjustments occur.
Frequently Asked Questions
Does the exemption allow issuers to avoid AFS licensing?
No. The exemption applies only to intermediaries distributing eligible stablecoins issued by entities that already hold an AFS licence. Issuers must still be AFS‑licensed and meet the Corporations Act criteria.
How long will the exemption last?
The exemption is temporary and scheduled to expire on June 1, 2028, unless repealed earlier. Market participants should plan for the eventual implementation of a formal payment stablecoin licensing framework.
Can other stablecoins qualify for the exemption?
Yes. ASIC may extend the exemption to additional stablecoin issuers once those issuers obtain the required AFS licences and the stablecoins meet the financial product classification.
Key Takeaways
- Temporary relief: Intermediaries can distribute eligible AFS‑issued stablecoins without separate licences.
- Scope today: Applies to AUDM (Catena Digital Pty) and selected distribution activities only.
- Prepare for reform: The exemption bridges to a future payment stablecoin licensing framework; plan compliance accordingly.
Conclusion
This ASIC instrument offers targeted, temporary relief for intermediaries distributing AFS‑licensed stablecoins, beginning with AUDM. Market participants should note the exemption’s limited scope and expiry date and prepare for the anticipated payment stablecoin licensing framework while monitoring official ASIC guidance. COINOTAG will continue to track developments and provide updates.
