ASIC provides clarity to digital asset industry with updated INFO 225, consultation on targeted exemptions and a timeline for licensing (with relief)

Today, 29 October 2025, ASIC has released the long-awaited revised INFO 225 Digital assets: Financial products and services (INFO 225), alongside a summary of consultation proposals and exemptions for consultation, to provide greater clarity for those in the digital asset industry regarding how activities fit within the financial services regulatory perimeter.

Beyond the lengthy guidance set out by ASIC, including 18 examples of different types of activities involving digital assets, ASIC is also proposing to provide the following:

1. targeted relief from licensing and other requirements under the Corporations Act 2001 (Cth) (Corporations Act):
   
   a. for distributors of stablecoins (expanding on some of the existing exemptions for certain specified stablecoins and relief under Project Acacia);
   
   b. in relation to wrapped tokens in certain circumstances; and
   
   c. to permit custodians of digital assets that are financial products to hold these in an omnibus account, in certain circumstances; and
   
   
2. a class 'no action letter' to the industry to allow them until 30 June 2026 to apply for an Australian financial services licence (AFSL), or notify ASIC of an intention to apply for a markets licence or clearing and settlement facility licence. Relief will remain until a licence is granted or rejected, or an application is withdrawn. Note this relief is not applicable for activities involving derivatives, non-cash payment facilities other than stablecoins, or crypto lending/earn products other than wrapped tokens.

Further details regarding INFO 225, the relief and no-action letter are below.

What do you need to do?

For those in the digital asset industry, the no action letter can only be relied on if an AFSL application or notification of an intention to apply for a markets or clearing and settlement facility license is made by 30 June 2026. To meet this deadline, it is imperative that you consider:

1. the activities your business is undertaking (or intends to undertake), including whether any digital asset is a financial product, and if so, whether you are providing a financial service, operating a market or a clearing and settlement facility; and
2. if necessary, prepare the application for an AFSL, or notification to apply for a markets licence or clearing and settlement facility licence.

For those interested in stablecoins, new payments, distributed ledger infrastructure, or providing custodial or depository services it will be important to engage with ASIC's consultation on the proposed relief, as these may directly impact your activities. The consultation closes on 12 November 2025.

For those looking to offer retail investors exposure to digital assets via a regulated investment vehicle, consider the additional guidance provided by ASIC, particularly regarding disclosure and DDO.

For all participants in the financial services and markets space, the detailed analysis regarding when a digital asset is likely to be a financial product, provides an in-depth insight into how ASIC is likely to assess whether any product is a financial product. This is a valuable resource for those across the financial ecosystem.

For those who want to know more, or would like assistance with any of these matters, we would be happy to discuss this with you at any time.

INFO 225

ASIC's guidance in INFO 225 is designed to help those with businesses which currently involve or are considering involving digital assets to understand their obligations under the Corporations Act and the Australian Securities and Investments Commission Act 2001 (ASIC Act).

INFO 225 addresses the following questions:

• When could a digital asset be or involve a financial product?
• When are you providing a financial service in relation to digital assets or related products?
• What else should you consider when offering a financial product and financial service?
• When could a digital asset exchange become financial market infrastructure?
• What to consider when offering retail investors exposure to digital assets via a regulated investment vehicle?

Digital assets as 'financial products'

INFO 225 provides helpful guidance regarding how to determine when a digital asset may or may not be or involve a financial product. It reiterates the importance of carefully considering all the rights and benefits attached to a digital asset (and the arrangements provided in connection with the digital asset) and clarifies that as the rights and benefits may change over time so too may the legal status and financial products classification of a digital asset. It also puts this into practice including 18 examples of how different digital assets and arrangements involving digital assets could be considered against the financial regulatory framework. One notable addition is that the revised INFO 225, amongst other things, clarifies that bitcoin is not likely to be a financial product.

Financial services and licensing

INFO 225 sets out that regardless of the technology used, if a person is carrying on a financial services business, operating a financial market or operating a clearing and settlement facility, they would be required to comply with Chapter 7 of the Corporations Act, including to hold any applicable licence (or fall within an applicable exemption).

Given the complexity of applying the regulatory framework to novel technology, INFO 225 sets out some of the minimum requirements to apply for an AFSL. This addresses some of the more practical concerns of the industry, such as around setting up compensation arrangements (i.e. professional indemnity insurance or complying with equivalent requirements), selection of responsible managers and financial requirements. In all, this revised guidance seems to set a roadmap for compliance with the existing financial services regulatory framework.

Proposed relief

ASIC is proposing to make 2 relief instruments to assist people in the digital asset industry.

Stablecoins and wrapped tokens

The first instrument is intended to provide relief for persons other than issuers of eligible stablecoins or wrapped tokens from licensing and disclosure obligations from licensing and other requirements under Chapter 7 of the Corporations Act. The proposal is set out in Draft ASIC Corporations (Stablecoin and Wrapped Token Relief) Instrument 2025/XXX. For a person providing services in relation to a stablecoin to be eligible:

1. the stablecoin must be a non-cash payment facility issued where the issuer holds an AFSL or is an exempt foreign issuer;
2. the person holding the stablecoin must have an unconditional right of redemption in underlying currency or a conditional right subject to satisfying KYC checks and, or meeting a minimum redemption threshold, but no other right, such as a right to receive a return; and
3. the person seeking to rely on the relief must be providing financial services other than issuing the stablecoin.

To rely on this in relation to a wrapped token, the token must:

1. be a derivative issued by a person that carries on a business of issuing derivatives in that class where the issuer holds an AFSL or is an exempt foreign issuer;
2. have an unconditional right of redemption; and
3. not have an underlying digital asset that is a financial product or if it is a financial product, is something other than an eligible stablecoin or eligible wrapped token.

For both stablecoins and wrapped tokens, it is still necessary for a product disclosure statement (PDS) or terms and conditions to meet certain requirements.

Custody

The second instrument is intended to permit a person who provides a custodial or depository service to hold financial products which are digital assets in an omnibus account, provided the digital assets are held separately from custodian's own assets. This is set out in Draft ASIC Corporations (Amendment) Instrument 2025/XXX.

ASIC is consulting on both relief instruments until 12 November 2025.

ASIC class 'no-action' letter

ASIC has today issued a class-order 'no action letter' which allows those undertaking activities with respect to digital assets time to apply for the requisite licences and to meet their obligations under Chapter 7 of the Corporations Act.

To rely on this letter, a person must:

• have undertaken the relevant activity in this jurisdiction on or before 31 December 2025;

• apply for an Australian financial services licence (AFSL), or notify ASIC of an intention to apply for a markets licence or clearing and settlement facility licence by 30 June 2026;

• for a markets licence or clearing and settlement facility licence, lodge the application with ASIC within 12 months of the date of notification; and
• where financial services are provided to retail clients, be a member of AFCA.

Note this relief is not applicable for activities involving derivatives, non-cash payment facilities other than stablecoins where a digital asset is used to make a payment, or crypto lending/earn products other than wrapped tokens.

The no-action position is intended to remain until the person is notified in writing that ASIC refuses to receive the application, the application is withdrawn, ASIC refuses to grant the application or the application is granted.

How did we get here?

INFO 225 was first published in 2017 in response to the issuance of digital or crypto 'coins' as part of initial coin offerings which were frequently offers of financial products undertaken without compliance with any financial services laws. As the products and services offered by those in the digital asset space become more sophisticated, ASIC's guidance has evolved.

The most recent iteration of INFO 225 follows ASIC's consultation in December 2024 (see our alert here) and recently granted targeted licensing exemptions for distributors of certain named stablecoins, as well as to facilitate Project Acacia.

This guidance is provided against a background of regulatory reform for both digital asset platforms and payments. For details of each of these reforms, please see our alerts regarding the digital asset platform and tokenised custody platform reform proposals here, and tranche 1A of the amendments to modernise our payments laws here. INFO 225 is intended to complement these proposed reforms by clarifying what is a financial product and service under the current law.

Other author: Nandini Kaushik, Lawyer.