Australia Regulates Stablecoins, Introducing New Financial Product Classification

Australia has taken a significant step in regulating the cryptocurrency sector by classifying stablecoins and wrapped tokens as financial products. This new legislation mandates that issuers of these digital assets obtain an Australian Financial Services Licence (AFSL), mirroring the regulatory framework for traditional financial institutions. Key players like centralized exchanges, custodians, and stablecoin issuers will now have to meet stringent industry standards similar to those established for banks and other regulated entities.