Australia’s main financial regulator, the Australian Securities and Investments Commission (ASIC), has identified rapid innovation in digital assets and related fintech sectors as a key risk for 2026, highlighting concerns that current rules are struggling to keep pace with new products and services. ASIC says the speed of change — especially around crypto, payments, and emerging financial technologies — is outstripping existing regulatory frameworks, creating unclear boundaries that could harm consumers and markets if not addressed.
A central worry is that many new digital asset businesses operate on the fringes of regulation or deliberately position themselves outside existing licensing requirements. This can lead to situations where unlicensed advice, misleading conduct, or other harmful practices occur without clear accountability, leaving users exposed to financial loss or exploitation. ASIC has made enhanced perimeter oversight and clearer licensing expectations a priority for the year ahead.
The regulator notes that digital asset adoption in Australia has grown significantly, with almost one-third of the population holding crypto, and some investors using retirement accounts to increase their exposure. This growing mainstream participation makes regulatory clarity even more urgent, as vulnerabilities in consumer protection and market integrity come into sharper focus. Authorities are debating new licensing laws to bring more digital asset platforms under formal supervision.
ASIC’s risk outlook also ties digital asset concerns to broader technological shifts, including artificial intelligence and cyber threats. The regulator emphasizes that emerging technologies and business models must be matched by robust risk management, governance, and enforcement frameworks if Australia wants to foster innovation without compromising investor protection or financial stability.
