Australia’s financial regulator, ASIC, has declared that the era of lax oversight for digital assets and fintech is ending. In its Key Issues Outlook 2026, the commission warns that regulatory gaps pose a stability risk, specifically highlighting unlicensed AI and crypto platforms. It is tightening rules to protect consumers, especially retirees managing over $750 billion in upcoming payouts, as domestic crypto ownership surpasses 30%.
The Australian Securities and Investments Commission (ASIC) has signaled a major regulatory shift for crypto and fintech. In its Key Issues Outlook 2026, the regulator stated that gaps in digital asset regulation pose a serious risk to financial stability.
ASIC is now closely monitoring companies using AI and digital payments to avoid standard licensing rules. The regulator’s goal is to stop unlicensed advice and misleading practices from these platforms.
Global regulatory differences have left Australian consumers less protected than those in regions like the EU. ASIC warns that while such platforms can help users, they can also cause harm and financial loss without proper oversight.
The regulator’s response requires firms to demonstrate strong controls beyond simply having an AI policy. Companies must be able to shut down systems that act against consumer interests.
Retirees are a key focus, with more than $750 billion flowing into retirement payouts over the next decade. Poor guidance could expose them to unsuitable investments.
Market infrastructure is also under pressure as the CHESS settlement system is phased out. The Australian Securities Exchange (ASX) is expected to deliver its replacement by mid-2026.
Crypto adoption is driving this regulatory push, not the other way around. According to a recent survey, around 32% of Australians owned digital assets in 2025.
Globally, regulation is accelerating after the U.S. passed the GENIUS Act. Australia is taking a balanced approach with its own stablecoin rules.
Under the ASIC Corporations Instrument 2025/631, the regulator is easing rules for approved stablecoins while tightening oversight on unlicensed players. For millions of Australians, crypto is becoming part of the regulated financial system.
