ASIC’s latest Consultation Paper 381 on changes to its policy guidance raises important questions about how digital assets should be regulated in Australia, especially as to Non-Cash Payment Facilities (NCPFs). But instead of providing clarity, it highlights a key challenge: how do we apply traditional financial laws to decentralised systems?
Right now, the approach seems to treat stablecoins, wallets, and even decentralised networks in a way that doesn’t fully account for the role of decentralisation. If stablecoins are considered NCPFs, does that mean Bitcoin is too? If a wallet falls under these rules, what about validators, miners, or exchanges? And if decentralisation isn’t a factor, how do we distinguish between open, permission-less networks and centrally controlled financial services?
Regulation should reflect the reality of these technologies. My submission to ASIC proposes a structured approach:
✅ Differentiate between centralised and decentralised networks.
✅ Regulate issuers of centralised assets (like stablecoins), but not decentralised assets, networks or wallets.
✅ Adopt a disclosure-based model, similar to the EU’s MiCA framework.
Other jurisdictions are already addressing these questions, and Australia has an opportunity to take a balanced approach—one that supports innovation while ensuring clear and effective oversight.
Read my full submission here