To provide greater clarity about the current law, ASIC has proposed a range of updates to INFO 225, including adding 13 practical examples of how the current financial product definitions apply to digital assets and related products.

According to the press release, ASIC’s existing approach to financial services licences will apply to digital assets. For example, whether an applicant is proposing to deal in traditional securities or securities based on a digital asset platform, the same licensing regime applies.

The consultation is seeking feedback on:

• ASIC’s updated guidance in INFO 225, including the worked examples,
• the application of the existing Australian Financial Services (AFS) licence processes, ASIC guidance and standard conditions to digital asset businesses,
• practical licensing issues for wrapped tokens and ‘stablecoins’, issues arising from the potential transition to the Government’s proposed digital asset platform and payment stablecoins regimes, and consideration of potential regulatory relief, and
• a potential class ‘no action’ position for digital asset businesses that are in the process of applying for or varying an AFS licence, Australian Markets Licence or Clearing and Settlement Facility licence.

The deadline for comments is 28 February 2025. 

ASIC intends to publish a final version of the updated INFO 225 in mid-2025, after considering feedback received through the consultation process.

The consultation paper explores:

(i) a comparison of two options:

• adding the Crypto Asset Reporting Framework into Australian tax law;
• customising a policy approach.

(ii) related amendments to the Common Reporting Standard (CRS).

Deadline for responses is 24 January 2025.

The consultation paper seeks feedback from industry on, and expressions of interest to participate in, the second phase of this project which will involve exploration and experimentation on approaches to tokenised asset settlement. An Industry Advisory Group will be established to provide broad-based industry input to the project.

Deadline for feedback is 11 December 2024.

The consultation seeks feedback from industry on, and expressions of interest to participate in, the second phase of this project which will involve exploration and experimentation on approaches to tokenised asset settlement. An Industry Advisory Group will be established to provide broad-based industry input to the project.

Deadline for comments is 11 December 2024.

The report finds that a "clear public interest case to issue a retail CBDC has yet to emerge in Australia."

This assessment is partly informed by the observation that "Australians are generally well served by the capabilities and resilience of the current retail payments system."

In jurisdictions that have issued a retail CBDC or indicated that it is quite possible in coming years, the main motivations have less resonance in Australia. Nonetheless, the RBA and Treasury remain "open to the possibility that this assessment could change over time as potential benefits and costs are better understood, both internationally and in a domestic context."

The report also highlights the role that a wholesale CBDC, alongside other forms of digital money and infrastructure upgrades, could play in enhancing the functioning of wholesale markets in Australia.

The paper looks at the merits of introducing a retail CBDC, focusing on the extent to which consumers would value having access to a digital form of money that is safer and potentially more private than commercial bank deposits. 

The government is consulting on a licensing framework for payment service providers (PSPs). The proposed reforms aim to ensure the regulation of payment services is "fit-for-purpose and provides consistent regulation based on the activity a payment service provider performs."

This paper is the second on the proposed framework, and follows the first consultation paper released in June 2023 that sought feedback on the proposed list of payment functions to be licensed. The proposed regulatory framework outlined in this paper includes an updated list of payment functions and leverages the Australian Financial Services framework to regulate PSPs.

In addition, the framework proposes:

• a set of regulatory requirements to facilitate greater access to payment systems
• graduated regulatory requirements for stored-value facilities including payment stablecoins
• a framework for industry standard-setting 
• a new rule-making power to enable the introduction of a mandatory revised ePayments code to provide enhanced consumer protections.

Deadline for comments is 2 February 2024.

“Today’s announcement of co‑ordinated international action on cryptoassets is a major step forward, marking another important milestone towards the widespread and co-ordinated approach to combat tax evasion through greater transparency and exchange of information,” Secretary-General Cormann said.

“We strongly welcome the extensive support being shown for quick action to make the international exchange of information collected under the OECD standard on cryptoasset reporting a reality. The international community can count on the OECD and the Global Forum on Transparency and Exchange of Information for Tax Purposes to ensure that the tax transparency architecture remains both up-to-date and effective going forward.”

The Crypto-Asset Reporting Framework (CARF) is a key component of the International Standards for Automatic Exchange of Information in Tax Matters developed by the OECD under a G20 mandate. It provides for the automatic exchange of tax-relevant information on cryptoassets and comes against the backdrop of a rapid adoption of the use of cryptoassets for a wide range of investment and financial uses.