Crypto, AI, and Payments Identified as Key 'Regulatory Perimeter' Concerns by Australia's ASIC
In its forward-looking 2026 outlook, Australia's securities watchdog has grouped cryptocurrency with artificial intelligence and payment systems, signaling intensified scrutiny of companies operating in licensing gray zones as a key enforcement focus.
The Australian Securities and Investments Commission (ASIC), which serves as Australia's primary financial regulatory authority, has characterized emerging sector participants such as digital asset firms as representing a "regulatory perimeter" challenge in its newly released Key Issues Outlook 2026 document, providing insight into its crypto enforcement strategy for the upcoming year.
According to the report released this Tuesday, ASIC has categorized digital assets in the same group as artificial intelligence-powered financial services and payment systems, highlighting concerns related to operations conducted without proper licensing, deceptive business practices, and companies functioning at the outer boundaries of current legal frameworks.
Rather than focusing its concerns on cryptocurrency adoption rates or market volatility, ASIC has directed attention toward structural vulnerabilities that arise when emerging financial service providers operate beyond the scope of established licensing requirements, disclosure obligations, and conduct regulations.
The forward-looking document also made clear that final determinations regarding whether new categories of cryptocurrency products should be incorporated into formal licensing frameworks remain the purview of government authorities, while noting that ASIC's main objective for 2026 will be ensuring transparency around licensing parameters and enhancing supervision at the regulatory perimeter.
Crypto grouped with artificial intelligence and payments
Within the outlook document, cryptocurrency is positioned alongside financial services powered by artificial intelligence and various payment platform providers as components of a wider spectrum of technology-driven activities that pose challenges to current regulatory architectures.
The regulatory authority cautioned that certain businesses may deliberately attempt to operate beyond regulatory reach by taking advantage of ambiguous boundary definitions, adding to what it characterized as regulatory ambiguity.
Some entities will actively seek to remain outside regulation, contributing to perceived regulatory uncertainty.
ASIC
"As a result, ensuring clarity on licensing requirements and maintaining effective perimeter oversight will remain priorities for ASIC in 2026."
Digital assets flagged amid ongoing enforcement activity
The spotlight on digital asset businesses arrives at a time when ASIC maintains active pursuit of enforcement proceedings connected to cryptocurrency operations conducted without appropriate licensing.
This Tuesday saw an Australian federal court issue an order requiring BPS Financial to pay penalty amounts totaling 14 million Australian dollars ($9.3 million) in connection with deceptive representations and unlicensed business conduct associated with its Qoin Wallet offering.
These recent developments unfold against the backdrop of Australia's broader initiative to officially integrate cryptocurrency enterprises into its established financial licensing infrastructure.
Last November, the Australian Treasury published draft legislative language proposing that digital asset platform operators be mandated to obtain an Australian Financial Services Licence, thereby extending fundamental financial services responsibilities to cryptocurrency businesses. Under the proposal, licensed platforms would be obligated to operate with efficiency, honesty and fairness, deliver transparent disclosures to their customers, and establish adequate risk management and compliance oversight mechanisms.
The proposed legislation, which has progressed through the consultation phase and is anticipated to be presented to parliament, would impose requirements on crypto trading and custody platform providers to satisfy ASIC's standards for conduct, disclosure and risk management under current statutory provisions.