ASIC and Crypto in 2026: Stance, Enforcement, and What It Means

What it is

The Australian Securities and Investments Commission (ASIC) is Australia’s integrated corporate, markets, and financial services regulator. Founded in 1998, it operates under the Australian Securities and Investments Commission Act 2001 and the Corporations Act 2001. ASIC’s mandate covers company and financial services licensing, market integrity, consumer protection, and enforcement across the financial system. Its jurisdiction extends to any entity offering financial products or services in Australia, and it has increasingly focused on digital assets. ASIC’s approach contrasts with some peers that have created bespoke crypto regimes, instead folding crypto into existing financial services law.

Crypto framework and stance

ASIC applies the existing financial services framework to crypto-assets, anchored by Information Sheet 225 (INFO 225) which explains when a crypto-asset may be a financial product. Most tokens that confer rights akin to shares, derivatives, or managed investment schemes require an Australian Financial Services Licence (AFSL). INFO 230 sets out admission guidelines for exchange-traded products, including which crypto-assets can serve as permissible underlying assets. Australia became an early mover in approving spot crypto exchange-traded products, with spot Bitcoin ETFs launching in 2024, signaling a pragmatic but regulated pathway for institutional exposure. ASIC’s stance is enforcement-heavy: entities dealing in or advising on crypto products without an AFSL face investigation and civil or criminal penalties. It coordinates with AUSTRAC for anti-money laundering oversight and mirrors global trends seen at the SEC and FCA , though with a lighter touch on certain stablecoins.

Notable actions

In 2024, spot Bitcoin ETFs launched on the Australian Securities Exchange (including Monochrome's IBTC and VanEck's VBTC), allowing retail investors direct exposure through regulated exchanges. The long-running Block Earner litigation over its fixed-yield “Earner” crypto product ultimately reinforced that yield and lending features can trigger AFSL requirements: after the Full Federal Court found in Block Earner's favour in April 2025, the High Court unanimously (7-0) overturned that decision in 2026, holding that Block Earner had provided unlicensed financial services. ASIC also pursued Finder Wallet for offering a crypto yield product without a licence, and secured civil penalties against BPS Financial over its Qoin token scheme, which was found to involve misleading conduct and unlicensed financial services. These cases underline ASIC’s willingness to test the boundaries of existing law through litigation rather than creating new rules.

Key figures

Sarah Court became ASIC Chair on 1 June 2026 — the first woman to hold the role — succeeding Joe Longo, whose term ended on 31 May 2026. Longo, who had chaired ASIC since June 2021, set the enforcement-led crypto agenda, consistently emphasising that “crypto-assets that are financial products are subject to existing laws” and that innovation must occur within the regulatory perimeter. Under this leadership ASIC expanded its digital asset enforcement team and maintained active dialogue with international counterparts, building a reputation as a pragmatic but strict enforcer that Court — a career enforcement specialist and former ACCC official — is expected to continue.

What it means for users and builders

For builders, the message is clear: if your token or service looks like a financial product—offering yield, representing an investment, or resembling a derivative—you must hold an AFSL or risk enforcement. Simple utility tokens and pure cryptocurrencies (like Bitcoin) generally fall outside the definition, but the line is blurry. Users can access spot crypto ETFs through familiar brokerage channels, lowering barriers to regulated exposure. However, they should be wary of unlicensed platforms offering high yields, as ASIC actively pursues such offerings. Projects that ignore ASIC’s guidance face civil penalties, reputational damage, and potential shutdown.

Outlook

ASIC is expected to continue its enforcement-led approach, with further product intervention orders or court actions against unlicensed crypto offerings. More spot crypto ETFs, possibly including Ethereum, are likely as the market matures. The regulator may also refine INFO 225 to address emerging categories like decentralized finance and tokenized real-world assets, but wholesale legislative change remains unlikely. As global pressure mounts, ASIC will likely deepen coordination with agencies like the MAS and SEC to tackle cross-border crypto firms.

Frequently asked questions

Does ASIC regulate crypto?

Yes. ASIC regulates crypto-assets that qualify as financial products under Australian law, such as tokens that function as securities, derivatives, or managed investment schemes. Providers of these products must hold an Australian Financial Services Licence (AFSL).

Is Bitcoin a financial product according to ASIC?

Generally no. Bitcoin and similar pure cryptocurrencies are not considered financial products by ASIC, as they do not confer rights like ownership, dividends, or returns. However, products that wrap Bitcoin, such as ETFs or lending schemes, are regulated.

What crypto cases has ASIC brought?

ASIC has taken enforcement against Block Earner — where the High Court confirmed in 2026 that its fixed-yield “Earner” product was an unlicensed financial service — Finder Wallet (unlicensed yield product), and BPS Financial (Qoin token scheme). Spot Bitcoin ETFs also launched on the ASX in 2024, a significant regulatory milestone.

Sources