Australia's financial regulator, the Australian Securities and Investments Commission (ASIC), framed new participants in emerging sectors like digital assets as a “regulatory perimeter” issue in its Key Issues Outlook 2026 paper, signaling how it intends to regulate crypto entities in the year ahead.
In the report published on Tuesday, ASIC grouped digital assets alongside payments and artificial intelligence-driven financial services, citing risks tied to unlicensed activity, misleading conduct and businesses operating at the edges of existing laws.
Instead of a warning about token adoption or crypto volatility, ASIC focused on structural risks created when emerging financial services fall outside established licensing, disclosure and conduct regimes.
The outlook also emphasized that decisions on whether new classes of crypto products should be brought within formal licensing regimes ultimately rest with the government, stating that its priority for 2026 will be maintaining clarity around licensing boundaries and strengthening oversight at the regulatory perimeter.
Crypto grouped with artificial intelligence and payments
In the outlook, crypto appears alongside AI-powered financial services and payment platforms as part of a broader set of technology-enabled activities that challenge existing regulatory frameworks.
The regulator warned that some companies may actively seek to remain outside of regulation by exploiting unclear boundaries, contributing to what it described as regulatory uncertainty.
“Some entities will actively seek to remain outside regulation, contributing to perceived regulatory uncertainty,” ASIC wrote.
“As a result, ensuring clarity on licensing requirements and maintaining effective perimeter oversight will remain priorities for ASIC in 2026.”
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Digital assets flagged amid ongoing enforcement activity
The emphasis on digital asset entities comes as ASIC continues to pursue enforcement actions tied to unlicensed crypto activities.
On Tuesday, an Australian federal court ordered BPS Financial to pay penalties of 14 million Australian dollars ($9.3 million) over misleading claims and unlicensed conduct linked to its Qoin Wallet product.
These developments come as Australia moves to formally fold crypto companies into its existing financial licensing regime.
In November, Australia’s Treasury released draft legislation proposing that digital asset platforms be required to hold an Australian Financial Services Licence, extending core financial services obligations to crypto companies, Cointelegraph previously reported. The proposal would require licensed platforms to act efficiently, honestly and fairly, provide clear disclosures to users and maintain appropriate risk management and compliance controls.
The bill, which advanced through consultation and is expected to reach Parliament, would require crypto trading and custody platforms to meet ASIC’s conduct, disclosure and risk obligations under existing law.
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