{"id":6106,"date":"2026-01-28T08:24:47","date_gmt":"2026-01-28T08:24:47","guid":{"rendered":"https:\/\/cryptonews.uk.com\/?p=6106"},"modified":"2026-01-28T08:24:47","modified_gmt":"2026-01-28T08:24:47","slug":"australias-regulator-trains-its-sights-on-cryptos-regulatory-grey-zones","status":"publish","type":"post","link":"https:\/\/cryptonews.uk.com\/?p=6106","title":{"rendered":"Australia\u2019s Regulator Trains Its Sights on Crypto\u2019s Regulatory Grey Zones"},"content":{"rendered":"

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  • ASIC is set to establish a clearer regulatory perimeter this year in an effort to minimise risks around unlicensed crypto advice and misleading conduct.<\/span><\/li>\n
  • ASIC will be somewhat dependent on the passage of the Australian Government\u2019s proposed digital assets framework, which would see digital asset firms become subject to regulation similar to that governing TradFi.<\/span><\/li>\n
  • Experts suggest legal and regulatory clarity is essential for the continued growth of the Australian digital assets industry.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n

    Rapid digital asset innovation that Australia is currently seeing \u201cby or for people unfamiliar with financial services,\u201d is creating a raft of risks, including unlicensed advice and misleading conduct, according to Australia\u2019s corporate and markets regulator, the Australian Securities and Investments Commission (ASIC).<\/p>\n

    ASIC Chair Joe Longo said those risks are being exacerbated by unclear regulation, which is why the regulator has earmarked the clarification of regulatory gaps around digital asset businesses as a priority for 2026.<\/p>\n

    Longo highlighted the continuing regulatory uncertainty facing what he refers to as \u201cemerging financial sector participants,\u201d \u2014 a category including digital assets, payment rails, and AI-based fintech firms \u2014 in its Key Issues Outlook 2026, <\/em>published January 27.<\/p>\n

    The ASIC Chair\u2019s comments come after the Australian Government proposed legislation in November 2025 to create a new comprehensive licensing system for digital asset firms.<\/p>\n

    The Corporations Amendment (Digital Assets Framework) Bill 2025<\/em> would establish a framework for businesses holding digital assets on behalf of customers and require all such businesses to hold an Australian Financial Services Licence. It could unlock as much as AU$24 billion in annual productivity gains, according to the Government.<\/p>\n

    Longo said the responsibility for closing the regulatory gaps ultimately falls on the Government, not regulators like ASIC.<\/p>\n

    \n
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    Where a business is currently legitimately unregulated, it is ultimately for government to determine whether a new class of products or services should be brought within a licensing regime.<\/em><\/p>\n<\/div>\n

    \n Joe Longo, ASIC Chair <\/div>\n<\/div>\n

    But he said that regardless of legislative and regulatory changes, some players will intentionally attempt to operate beyond the perimeter of any regulation, which could contribute to an ongoing perception of regulatory uncertainty.<\/p>\n

    \u201cAs a result,\u201d Longo explained, \u201censuring clarity on licensing requirements and maintaining effective perimeter oversight will remain priorities for ASIC in 2026.\u201d<\/p>\n

    Related: Australia\u2019s Crypto Industry Enters Its \u201cTraining Phase\u201d as Regulation Turns Real<\/strong><\/p>\n

    New Bill Will See Digital Asset Firms Subject to Same Regulation as TradFi<\/h2>\n

    If the Government\u2019s proposed digital asset legislation successfully passes Federal Parliament and becomes law, digital asset-based businesses will become subject to the same kind of regulation TradFi firms have operated under for years.\u00a0<\/p>\n

    This would mean digital asset businesses would be legally required to meet certain standards, including those around honesty, fairness and transparency and would be required to maintain appropriate risk management and compliance systems.<\/p>\n

    It would also bring crypto firms more explicitly under ASIC\u2019s regulatory oversight, meaning they\u2019d also be required to meet the regulator\u2019s disclosure, conduct and risk obligations, rather than being subject to more piecemeal obligations laid out in crypto-specific rules.<\/p>\n

    The proposed legislation has passed through the consultation stage and is expected to be tabled in Parliament this year.<\/p>\n

    Speaking to Decrypt<\/em>, James Volpe, the founding director of Melbourne-based digital asset firm uCubed, said he thinks Australia is heading in the right direction with its approach to crypto regulation.<\/p>\n

    \u201cI believe we\u2019re on the right track and that the frameworks are becoming clearer,\u201d Volpe said, adding that the complexity of these digital assets and the products and services built on them create a unique set of risks.<\/p>\n

    \u201cThese are not basic technologies, and it will take time and focus on education to ensure consumers are safe in this new landscape,\u201d he said.<\/p>\n

    Related: Australian Advisers Face Growing Pressure as Crypto Demand Outpaces Advice<\/strong><\/p>\n

    Darcy Allen, Associate Professor at RMIT University and Director at the Digital Economy Council of Australia, said passing the new digital assets legislation must be a top priority for the government.<\/p>\n

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    The most effective thing the Australian government can do right now is clearly define the regulatory perimeter by passing long-overdue licensing legislation.<\/em><\/p>\n<\/div>\n

    \n Darcy Allen, Associate Professor at RMIT University and Director at the Digital Economy Council of Australia <\/div>\n<\/div><\/div>\n

    Australia,Digital Asset,Regulation#Australias #Regulator #Trains #Sights #Cryptos #Regulatory #Grey #Zones1769588687<\/p>\n","protected":false},"excerpt":{"rendered":"

    ASIC is set to establish a clearer regulatory perimeter this year in an effort to minimise risks around unlicensed crypto advice and misleading conduct. ASIC will be somewhat dependent on the passage of the Australian Government\u2019s proposed digital assets framework, which would see digital asset firms become subject to regulation similar to that governing TradFi.<\/p>\n","protected":false},"author":1,"featured_media":6107,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[60,1069,1866,1833,577,1865,1864,1867],"class_list":{"0":"post-6106","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bitcoin","8":"tag-australias","9":"tag-cryptos","10":"tag-grey","11":"tag-regulator","12":"tag-regulatory","13":"tag-sights","14":"tag-trains","15":"tag-zones"},"yoast_head":"\nAustralia\u2019s Regulator Trains Its Sights on Crypto\u2019s Regulatory Grey Zones - Crypto News: Latest Cryptocurrency News and Analysis<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptonews.uk.com\/?p=6106\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Australia\u2019s Regulator Trains Its Sights on Crypto\u2019s Regulatory Grey Zones\" \/>\n<meta property=\"og:description\" content=\"ASIC is set to establish a clearer regulatory perimeter this year in an effort to minimise risks around unlicensed crypto advice and misleading conduct. 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