ASIC warns of regulatory gaps in crypto, AI and payments now

ASIC warns of regulatory gaps in fast‑growing fintech, urging clearer licensing for digital assets, crypto, payments and AI firms.

  • ASIC has flagged regulatory gaps in fast-growing fintech areas, with a focus on digital assets.
  • Consumers face exposure to rapidly expanding and unlicensed crypto, payments and Artificial Intelligence firms.
  • The regulator said it is for the government to decide whether new products should be captured by existing rules.
  • Some firms may seek to remain unlicensed, adding to “perceived regulatory uncertainty.”
  • The report follows recent amendments to the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001 to set rules for firms handling customers’ digital assets.

ASIC released a new report on Tuesday identifying gaps in regulation across rapidly growing fintech sectors, particularly digital assets, and warning that consumers face risks from unlicensed crypto, payments and artificial intelligence companies. The regulator framed the issue as requiring government decisions on whether new products and services should come under regulation, citing expanding activity outside licensing rules in Australia.

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The report, titled Key issues outlook 2026, said some entities may actively seek to remain unlicensed, contributing to “perceived regulatory uncertainty.” It urged clarity on licensing boundaries to reduce consumer exposure and help firms understand regulatory expectations.

< b>ASIC said this pattern of behavior means the regulator will remain focused on monitoring regulatory boundaries and keeping licensing rules clear through 2026. The document comes weeks after lawmakers introduced amendments to the Corporations Act 2001 and the Australian Securities and Investments Commission Act 2001 that carve out rules for companies that hold or manage customers’ digital assets.

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