The Key Issues Outlook released Monday says the Australian Securities and Investments Commission has listed regulatory gaps around crypto firms as a major risk for Australia. ASIC warned fast-growing crypto, payments, and AI firms operating at the edge of regulation expose consumers to unlicensed advice and misleading conduct.
The government’s Corporations Amendment (Digital Assets Framework) Bill 2025 would require platforms holding customer digital assets to obtain an Australian Financial Services Licence. Officials say the reform could unlock about $15.6 billion in annual productivity gains.
Joe Longo, ASIC chair, warned about shifting conditions in Australia’s financial system and divergent global rules. He said “major shifts across Australia’s financial system as pressures on consumers, markets and businesses intensify,” and that divergence was “creating growing fragmentation that makes compliance more complex and increases the risk of uneven consumer protections.”
ASIC noted some firms deliberately seek to remain outside existing rules, increasing uncertainty and complicating enforcement (Ed. note: this behavior heightens oversight challenges). The regulator named clearer licensing boundaries and perimeter oversight as 2026 priorities.
Academic Darcy Allen said, “The most effective thing the Australian government can do right now is clearly define the regulatory perimeter by passing long-overdue licensing legislation.” Industry voices also urged expanded testing pathways and pointed to ASIC’s Enhanced Regulatory Sandbox as a tool to support experimental innovation while protecting consumers.
