ASIC Lifts Licensing Burden for Stablecoin Middlemen

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 18, 2025

Key Takeaways

ASIC allows intermediaries to distribute certain stablecoins without holding their own AFS or market licenses if the issuer is licensed;
The exemption applies only to stablecoins defined as financial products and currently includes only AUDM by Catena Digital Pty Ltd;
This temporary relief is in place until June 1, 2028, while a full licensing framework for payment stablecoins is developed.

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Intermediaries working with certain stablecoins in Australia can operate without holding their own licenses, under a new exemption announced by the Australian Securities and Investments Commission (ASIC).

The temporary relief, outlined in a legal document called the ASIC Corporations (Stablecoin Distribution Exemption) Instrument 2025/631, allows businesses that assist in distributing stablecoins to bypass some licensing requirements.

This means these intermediaries do not need to hold an Australian Financial Services (AFS) licence or licenses related to market or settlement facilities, as long as the stablecoin is issued by a firm that already holds an AFS licence.

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ASIC stated in a press release on September 18 that the decision is meant to encourage responsible innovation in digital assets, while ensuring that protections for consumers remain in place. The exemption only applies to stablecoins that fall under the definition of a financial product under Australia’s current laws and that are issued by licensed entities.

Currently, the exemption applies only to AUDM, which is issued by Catena Digital Pty Ltd, a firm with an AFS licence.

The exemption covers a range of activities, including providing general advice about the token, acting as a market maker, trading the token (excluding issuance), and offering custody services.

This change is intended as a short-term measure while the government continues to develop a dedicated licensing framework for payment-related stablecoins. The exemption will remain in effect until June 1, 2028.

Meanwhile, MoneyGram recently introduced a digital payment app in Colombia. How does it work? Read the full story.