Australia's ASIC Flags Crypto as Key Regulatory Challenge for 2026
By John Nada·Jan 27, 2026·2 min read
ASIC has identified digital assets as a major regulatory perimeter issue, emphasizing the need for clarity in licensing and oversight for 2026.
Australia's financial regulator, the Australian Securities and Investments Commission (ASIC), has identified new participants in digital assets as a significant 'regulatory perimeter' issue in its Key Issues Outlook 2026 paper. ASIC grouped crypto with payments and artificial intelligence-driven financial services, highlighting risks from unlicensed activities and misleading conduct. Instead of merely warning about token adoption or volatility, ASIC focused on the structural risks arising when these emerging services operate outside established regulations.
The outlook emphasizes that decisions regarding the formal licensing of new crypto products ultimately lie with the government. ASIC's priority for 2026 involves maintaining clarity around licensing boundaries and strengthening oversight at the regulatory perimeter. The report stated, "Some entities will actively seek to remain outside regulation, contributing to perceived regulatory uncertainty."
This focus on digital assets coincides with ongoing enforcement actions by ASIC against unlicensed crypto operations. Recently, an Australian federal court ordered BPS Financial to pay penalties linked to misleading claims related to its Qoin Wallet product. As Australia moves to integrate crypto companies into its existing financial licensing regime, draft legislation from the Treasury proposes that digital asset platforms be required to hold an Australian Financial Services Licence.
The implications are significant. Licensed platforms will need to adhere to core financial services obligations, ensuring transparency and proper risk management. As the regulatory landscape evolves, clarity on licensing requirements will be crucial for crypto entities aiming to operate legitimately.
In summary, ASIC's approach signals a tightening grip on the crypto sector, emphasizing the need for compliance in a rapidly changing environment.