Australian Regulator Eases Rules For Stablecoins And Wrapped Tokens

Australia’s securities regulator has removed licensing requirements for stablecoin intermediaries and approved omnibus accounts, reducing compliance costs.

Australia’s securities regulator has finalized exemptions that will make it easier for businesses to distribute stablecoins and wrapped tokens.

The Australian Securities and Investments Commission (ASIC) on Tuesday announced the new measures, aimed at fostering innovation and growth in the digital assets and payment sectors.

It stated that it was “granting class relief” for intermediaries engaging in the secondary distribution of certain stablecoins and wrapped tokens.

This means that companies no longer need separate, and often expensive, licenses to act as intermediaries in these markets, and they can now use “omnibus accounts” with proper record-keeping.

The new exemptions extend the earlier stablecoin relief by removing the requirement for intermediaries to hold separate Australian Financial Services (AFS) licenses when providing services related to stablecoins or wrapped tokens.

The regulator stated that these omnibus structures were widely used in the industry, offering efficiencies in speed and transaction costs, and helping some entities manage risk and cybersecurity.

“ASIC’s announcement helps level the playing field for stablecoin innovation in Australia,” said Drew Bradford, CEO of Australian stablecoin issuer Macropod.

“By giving both new and established players a clearer, more flexible framework, particularly around reserve and asset-management requirements, it removes friction and gives the sector confidence to build,” he continued.

Related: Australia risks ‘missed opportunity’ by shirking tokenization: top regulator

Source: CoinTelegraph