Australia’s ASIC flags crypto as ‘regulatory perimeter’ risk alongside AI, payments

ASIC now treats crypto as a key regulatory perimeter risk for 2026

Australia’s corporate watchdog, the Australian Securities and Investments Commission (ASIC), has officially added crypto and digital assets to its 2026 “key risk areas,” warning that fast‑moving fintechs in crypto, AI, and payments are operating on the edge of current regulation.

In its annual Key Issues Outlook 2026, ASIC groups digital assets, payments, and AI-driven financial services together as areas that sit on the “regulatory perimeter”, meaning they are either only partially covered by existing rules or operate in grey zones that leave gaps in consumer and market protection.

This is a big moment for crypto news in Australia and Pacific markets: it confirms that crypto is no longer a niche curiosity, but a material risk in the eyes of the national regulator, sitting alongside emerging threats like AI abuse and next‑generation payment systems.

What it means is that crypto is on the “regulatory perimeter.”

When ASIC says something is on the “regulatory perimeter,” it usually means:

• The activity isn’t fully outside the law, but it’s not clearly inside a regulated category either.
• There’s uncertainty about licensing: should a crypto exchange, custody platform, or staking service hold an Australian Financial Services Licence (AFSL)?
• Firms may operate legally today simply because no rule explicitly covers them, creating a “loophole‑style” effect.

ASIC warns that this uncertainty creates real risks:

• Unlicensed financial advice and misleading marketing around crypto products.
• Misconduct that exploits unclear boundaries, such as platforms handling customer funds without AFSL‑style prudential oversight.
• Crypto firms that intentionally stay outside regulation to avoid compliance costs increase perceived regulatory risk for the whole sector.

How crypto, AI, and payments are grouped together

In ASIC’s 2026 outlook, these three areas are treated as closely linked:

1. Digital assets (crypto)

• Rapid innovation by or for people unfamiliar with financial services is creating risks around unlicensed advice, misleading conduct, and products that sit in regulatory grey areas.
• ASIC is focused on ensuring clarity on licensing and maintaining “effective perimeter oversight,” essentially watching closely where crypto businesses sit and pushing for clearer rules.

2. AI in finance

• ASIC highlights that fast‑moving AI is transforming financial services, enabling personalised products but also fuelling new kinds of cybercrime.
• They’re concerned about automated decisions that exploit behavioural bias, and warn that many firms’ AI governance is still immature.

3. Payments and fintech platforms

• New payment methods and fintech platforms are expanding quickly, but their regulatory classification isn’t always clear.
• ASIC is watching for firms that provide services on the edge of banking, lending, or clearing without being clearly licensed.

Putting crypto in this trio signals that ASIC views it through the same lens as AI and modern payments: not just as a technology, but as a financial risk that needs perimeter oversight and clearer licensing rules.

What’s next in Australian crypto regulation

ASIC is clear that it can’t unilaterally create new crypto rules; that’s the government’s job. However, they are actively pushing for legislative change:

• The Australian government is currently working on the Corporations Amendment (Digital Assets Framework) Bill 2025, which would introduce specific licensing categories for crypto exchanges and custody platforms.
• If passed, these platforms would need to hold an Australian Financial Services Licence (AFSL) and meet ASIC standards on client fund handling, custody, and settlement.
• ASIC has also issued temporary relief (class exemptions) that let certain crypto businesses operate more freely until June 2026, while they adjust to the new rules.

This means that 2026 is likely to be a pivotal year for crypto businesses in Australia:

• If the Digital Assets Framework passes, crypto will be pulled fully inside the licensing regime, with clear expectations on capital, custody, and client asset protection.
• If not, ASIC will continue its current “regulate by enforcement” approach, using existing powers to take action against firms that cross the line into clearly regulated activities.

What this means for crypto users and businesses in Australia

For crypto users:

• ASIC is tightening oversight to reduce risks of scams, misleading conduct, and loss of funds.
• Over time, this should mean clearer product disclosure and stronger protections for retail investors, especially on exchanges and custody platforms.

For crypto businesses and exchanges:

• Uncertainty around licensing will remain a key theme in 2026 until the Digital Assets Framework is finalised.
• The on‑ramp into regulation (via AFSL, temporary exemptions, or the new framework) is now the priority: lack of a clear licence is a major regulatory risk.

For the wider crypto pur and blockchain community:

• ASIC’s move is a reminder that even in a tech‑friendly environment, regulators are watching closely when large volumes of consumer money are at stake.
• The path forward is clear: survive by operating responsibly now, and build for the future by aligning with the coming regulatory framework, rather than relying on loopholes.