AUSTRALIA Trends and Developments Contributed by: Steven Pettigrove, Katrina Sharman, Luke Higgins and William Deeb, Piper Alderman
New reporting details for SMRs and TTRs There are new details on the required contents of SMR and TTR reports. Where the matter involves virtual assets, reports must now include: • the type of virtual assets, including details of the backing asset (if any); • the quantity of virtual asset units; • the value in AUD; • the applicable exchange rate in determining the value; • the unique transaction reference number, including a transaction hash; and • the wallet address, including destination tag or memo details. Certain relief under transitional rules The AML/CTF reforms include a series of targeted transitional measures to ease implementation for existing reporting entities: • a three-year transition for changes to initial CDD requirements to 30 March 2029 (with ongoing CDD obligations applying immediately); • transition from IFTI to IVTS reporting by 31 March 2029, subject to limited extensions; • deferred reporting obligations for certain self–host- ed wallet transfers until 31 March 2029; and • temporary relief from selected AML/CTF obliga- tions for certain registrable VASP services (exclud- ing fiat on and off ramps) until 1 July 2026. Broader Financial Infrastructure and Payments Reform The Australian government is undertaking a signifi- cant, multi–year overhaul of payments legislation to modernise the outdated regulatory framework and better capture emerging digital business models. The reforms centre on the Treasury’s Tranche 1 expo- sure draft legislation, which proposes replacing the existing non-cash payment and purchased payment facility frameworks. The reforms expand the regula- tory perimeter by bringing a broader range of payment service providers into the AFSL regime, introducing new regulated products (including stored value facili- ties and stablecoins), enhancing APRA oversight and mandating an updated ePayments Code.
Following the implementation of Australia’s reformed financial market infrastructure regime under the Treas- ury Laws Amendment (Financial Market Infrastruc- ture and Other Measures) Act 2024 (Cth), ASIC has released Consultation Paper 50 (CS 50) proposing targeted updates to key Regulatory Guides to reflect the new framework and its expanded powers. The proposed changes update RG 172, RG 249 and RG 268 to: • align the guidance with the revised legislative regime; • clarify new statutory concepts (such as the material connection test for overseas entities and enhanced governance requirements); and • adopt a more streamlined, market-neutral approach to supervision. Stablecoin relief instrument ASIC has introduced a tailored relief instrument, under ASIC Corporations (Stablecoin and Wrapped Token Relief) Instrument 2025/867, which provides licensing and disclosure exemptions for distributors of certain stablecoins and wrapped tokens that meet strict eli- gibility criteria. This criterion includes: • equal to or greater than the backing of the stable- coin by cash or cash equivalents; and • reserve reporting requirements. While the instrument signals a more permissive regu- latory approach, its narrowly defined criteria signifi- cantly limit its practical scope, potentially excluding some widely used stablecoins. The relief instrument is set to expire on 1 January 2029. Regulator and judicial enforcement focus ASIC’s recent enforcement activity reflects continued scrutiny of crypto-asset offerings that allegedly rep- licate the economic substance of traditional financial products and services. Over the past 12 months, two of ASIC’s key cases involving crypto-asset business- es have seen significant developments, as outlined below. • ASIC BPS Financial Pty Ltd: In the long-running ASIC proceedings concerning the Qoin Wallet product, the Federal Court imposed AUD14 million
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