Where things stand
The Australian Securities and Investments Commission (ASIC) has released its updated Information Sheet 225 (INFO 225), following its December 2024 consultation (CP 381). The guidance provides an enhanced suite of worked examples to illustrate how existing Australian financial services concepts apply to digital assets and sets out ASIC’s operational expectations for licensees. The worked examples reinforce that financial product classification outcomes turn on the bundle of rights, benefits, expectations and product features that are associated with a particular digital asset or product involving digital assets.
Key changes at a glance
INFO 225 now includes 18 worked examples across five categories of financial products:
facilities for making a financial investment (examples 1-5)
interests in a managed investment scheme (MIS) (examples 6-11)
securities (that is, shares or debentures) (examples 12-14)
derivatives (examples 15-16)
non-cash payment (NCP) facilities (examples 17-18).
ASIC has provided the following guidance for key digital asset product types.
Product | ASIC’s position | |
Stablecoins | Fiat-backed stablecoins are considered NCP facilities. This departs from the government’s recently released draft exposure legislation as part of its Payment System Modernisation reforms, which would classify fiat‑backed stablecoins of the same nature as “funds” rather than financial products. INFO 225 also sets out commentary suggesting that algorithmic stablecoins are likely to be derivatives, aligning with ASIC’s position in CP 381. ASIC has proposed transitional relief. | |
Wrapped tokens | Consistent with CP 381, ASIC considers these likely to be derivatives. Proposed relief applies. | |
Staking and yield products | Native participation in a proof‑of‑stake protocol by an individual validator is unlikely to be a financial product. In contrast, intermediated or platform staking, especially where the provider offers additional rights or benefits such as enabling participation below protocol minimums, will likely be considered a facility for making a financial investment or MIS. | |
Digital asset wallets | Custodial and non-custodial digital asset wallets may be NCP facilities where users can use the digital wallet to make payments to third parties. Providers of wallet software may require an AFSL, even if they do not hold customer assets or private keys. | |
Tokenised assets | Tokens backed by pooled assets or run as a common enterprise for the benefit of holders (for example, gold‑linked tokens where proceeds are pooled or fractionalised real estate interests with central management) are likely to MIS. Fully allocated tokens specifically identified property held for a holder on a bailment/safekeeping basis (for example, a token mapping 1:1 to a numbered gold bar or parcel) is less likely to be an MIS, assuming no pooling or common enterprise. | |
Bitcoin | ASIC confirms that Bitcoin is unlikely to be a financial product. |
Operational expectations for licensees and transitional relief
INFO 225 also clarifies that the custodial or depository standards in RG 133 are technology‑neutral and apply to custody of any financial product, including digital assets, under a principles‑based framework. ASIC reiterates that obligations turn on the function performed rather than the technology used, and expects controls, such as segregation of client assets, robust key management, cyber and operational resilience, and appropriate independent assurance, to be calibrated to the nature, scale and complexity of the business.
In response to feedback highlighting the unique challenges digital asset business may face in meeting financial services obligations, ASIC has provided the following additional guidance:
Professional indemnity insurance: Where a financial services provider has shown genuine attempts to obtain professional indemnity insurance but is unable to do so, alternative arrangements may be considered on a case-by-case basis if the alternative arrangements provide a comparable level of protection.
Responsible managers: As a transitional approach to compliance with the organisational competency obligation, ASIC has confirmed that it will assess on a case-by-case basis whether the combination of two or more people may meet the responsible managers requirement. This could involve one responsible manager overseeing the regulatory aspects of the business while the other oversees operational business decisions in relation to the digital assets. The second responsible manager may have unregulated digital asset experience.
Client money requirements: INFO 225 reiterates client money requirements: where the client money regime applies, funds must be held in a separate trust account with an Australian ADI. Recognising debanking constraints, ASIC has indicated that it may consider relief on a case-by-case basis where the provider cannot obtain banking services and can demonstrate that alternative arrangements will provide equivalent customer protections to the client money regime.
Financial requirements: ASIC may provide individual relief from the obligation to hold 50% of net tangible assets in cash or cash equivalents where a digital assets business cannot obtain banking services due to debanking challenges.
Digital asset businesses that provide financial services will still need to comply with other requirements such as in relation to disclosure, dispute resolution and design and distribution obligations.
What’s next
ASIC may further update INFO 225 following outcomes from the government’s consultation on draft reforms to digital asset platforms, tokenised custody and payment service providers.
INFO 225 has been released alongside an updated class no action letter and accompanying ASIC instruments covering stablecoin and wrapped token relief and extending the use of omnibus accounts.
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This article was originally published on on 8 September 2025 and updated on 11 November 2025.