Australia's securities regulator is advocating for a regulatory approach that treats blockchain and crypto not as separate asset classes, but as existing financial infrastructure. Rhys Bollen, head of fintech at the Australian Securities and Investments Commission (ASIC), stated that legislation should focus on the "economic substance rather than technological form."
This means tokenized securities would fall under existing securities laws, and stablecoins would be subject to payment services legislation. Bollen emphasized that the core financial functions-capital allocation, payments, and risk management-remain unchanged despite technological advancements like distributed ledger technology. He noted that regulatory systems have historically adapted to technological shifts without abandoning fundamental principles.
Australia's approach involves amending existing laws, such as the Corporations Act, rather than creating a standalone crypto bill. ASIC guidance already confirms that digital assets can be regulated under definitions of "financial product" and "financial service" where they function as securities, derivatives, or payment facilities. This focus on economic characteristics aims to provide clarity and reduce regulatory arbitrage.
Bollen acknowledged that decentralized products present regulatory challenges, but argued that obligations can attach where identifiable parties influence protocol design or economic outcomes.