ASIC’s New Stablecoin Distribution Exemption Explained
Australia just took an important step in shaping the future of digital money. In September 2025, the Australian Securities and Investments Commission (ASIC) released Instrument 2025/631 – the Stablecoin Distribution Exemption.
This new rule lowers barriers for how stablecoins can be offered in Australia — while still keeping strict accountability for issuers.
What does “distribution” mean?
In financial regulation, distributing a product isn’t just selling it. It can include:
- Issuing a new stablecoin to the public
- Offering it through an exchange or app
- Marketing it as an investment product
- Providing it as part of a financial service
Normally, all of these activities require licensing and compliance under the Corporations Act.
What the exemption does
The exemption means distributors (like exchanges or brokers) don’t need their own Australian Financial Services (AFS) licence to offer certain stablecoins — as long as the issuer already holds one.
At the moment, this primarily applies to Catena Digital’s AUDM stablecoin.
Conditions to qualify
- The issuer must hold an AFS licence.
- The stablecoin must be a financial product under the Corporations Act.
- The exemption only covers distributors, not issuers.
- Distributors must provide the issuer’s Product Disclosure Statement (PDS) to retail clients.
- Relief applies to AFS, market, and clearing licences.
- The exemption is temporary, expiring 1 June 2028.
Why this matters
This exemption strikes a balance between innovation and oversight:
- Startups and exchanges can integrate stablecoins more easily.
- Consumers still get protections via disclosure rules.
- Regulators maintain direct control over issuers.
It’s a sign that Australia is carving out space for stablecoin innovation while still putting safeguards in place.
Source: https://www.asic.gov.au/about-asic/news-centre/news-items/asic-supports-innovation-through-exemptions-for-distributors-of-australian-stablecoin/
