In remarks accompanying the release of a new report on international financial market innovation, the Australian Securities & Investments Commission said rapid changes in how assets are issued, markets are structured and transactions are settled are creating practical regulatory challenges. ASIC highlighted that innovation is increasingly emerging outside existing regulatory boundaries, including issuerless crypto assets, integrated everything exchanges that combine trading, custody, settlement and payments, and decentralised markets operated through software. ASIC said Australia’s existing framework retains important flexibility because broad product definitions and licensing powers can already capture new products and services, citing a recent High Court matter as confirmation that the regime is broad enough to address a full spectrum of new offerings. The main challenge, it said, is reducing regulatory uncertainty so firms can understand upfront whether they need a licence and what type, while avoiding fragmented engagement with multiple regulators. ASIC said it is focusing on clearer pathways, stronger coordination and a more predictable regulatory environment, alongside work already under way through its public and private markets roadmap, the relaunched Innovation Hub, regulatory sandbox improvements under government review and collaboration with other agencies including through Project Acacia. ASIC also said it is using the report and related industry engagement to gather views on how to support responsible financial market innovation without impeding new products and business models.
Australian Securities & Investments Commission2026-06-30
Australian Securities & Investments Commission outlines clearer regulatory pathways for financial market innovation
The Australian Securities & Investments Commission said fast-moving financial market innovation is increasingly testing regulatory boundaries, particularly in issuerless crypto assets, integrated trading platforms and decentralised markets. In remarks tied to a new international innovation report, ASIC said the current framework is flexible enough to capture new products but that it wants to give firms clearer licensing pathways, better regulatory coordination and more certainty.