In a keynote at the ASIFMA Annual Conference in Sydney, ASIC Chair Joe Longo set out ASIC’s agenda to support financial innovation, including changes flowing from a completed review of the ASIC Innovation Hub and further work to make the transition from regulatory sandbox testing to licensing more workable for start-ups. The Innovation Hub review assessed how the programme has supported fintech and regtech firms since 2015 and identified areas for improvement and for ASIC to lead on system-wide change. ASIC is also supporting an independent review of the Government’s Enhanced Regulatory Sandbox, with industry feedback highlighting that sandbox participants face a “cliff” at the end of testing because very few have moved into licensing over the past five years and there is limited scope for intermediate options. Longo outlined a potential model involving earlier licensing guidance, a dedicated case manager and structured exit planning, alongside options such as becoming an authorised representative, selling to a licensed firm or winding up. On market infrastructure and digital assets, Longo pointed to ASIC’s involvement in the Reserve Bank of Australia’s Project Acacia and noted that ASIC has licensed FCX to trade and settle tokenised private company shares and managed investment scheme units, as well as licensing firms offering tokenised assets and stablecoins. ASIC has commissioned research on regulatory and legal barriers to asset tokenisation and expects to convene an industry and expert roundtable in May once that work is completed, alongside a broader roundtable of senior market experts on future regulatory models. ASIC is also working with Treasury on implementation of proposed digital asset and payment services law reforms and indicated it will consult industry and establish a new advisory group to support implementation, subject to the laws passing Parliament.

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