Policy Update — September 2025 #2

CONSULTATIONS

Treasury digital asset & tokenised custody platforms licensing consultation 

Treasury is consulting on draft exposure legislation for a new licensing regime for cryptocurrency and tokenised custody platforms.

The proposed legislation will create definitions for two new financial products:

• Digital Asset Platforms (DAPs) - eg cryptocurrency exchanges, staking platforms, wallet and custody platforms; and

• Tokenised Custody Platforms (TCPs) - eg tokenised physical or intangible asset platforms, but not stored value facilities like stablecoins.

Making DAPs and TCPs financial products would require their operators to obtain Australian Financial Services Licences and comply with existing financial services laws, such as those in relation to:

• misleading and deceptive conduct;

• unfair contract terms;

• design and distribution obligations; and

• ASIC administration, supervision, and enforcement. 

The consultation closes on 24 October 2025.

FinTech Australia will making a submission with the assistance of our policy partner Gadens. We are hosting a member call at 3pm on Thursday, 2 October with Gadens. You can register here to attend.

Please contact our Policy Team if you wish to provide feedback.

ASIC regulatory simplification consultation

ASIC is consulting on how it can simplify regulation and ease the regulatory burden on companies. 

We are asking members to share proposals for red tape reduction, with an emphasis on proposal which ASIC can easily implement. For example, changes to regulatory portals, updates to regulatory guides, and suggestions for how regulatory processes may be conducted more efficiently.

FinTech Australia intends to make a submission with the assistance of our policy partner King & Wood Mallesons. We have received an extension to lodge our submission by 29 October 2025. We are hosting a member call at 11am on Friday, 3 October with King & Wood Mallesons. You can register here to attend.

Please contact our Policy Team if you wish to provide feedback.

Strategic Examination of Research and Development: issues papers

The Department of Industry, Resources and Science has released a series of issues papers on research, development and innovation (RD&I):

1.      "National coordination for RD&I impact";

2.      "Scaling the system: A proactive approach to scaling the RD&I system";

3.      "RD&I incentives: Incentivising breakthrough innovation and ambitious R&D";

4.      “Investment and capital: growing investment and capital for RD&I”; and

5.      “Foundational research: creating knowledge”.

Papers 3 to 5 on R&D incentives, funding and foundational research have been released since our previous newsletter.

FinTech Australia will making a submission with the assistance of our policy partner DLA Piper. Please contact our Policy Team if you wish to provide feedback.

Department of Finance Digital ID Rules consultation

The Department of Finance is consulting on changes to the Digital ID Rules 2024 and the Digital ID (Accreditation) Rules 2024, which set out requirements for entities wanting to participate in the Australian Government Digital ID System. The proposals include measures to:

1. Establish a redress framework for incidents that occur in relation to accredited services of accredited entities that are provided within the Australian Government Digital ID System.

2. Provide a framework for the System Administrator to direct entities to undertake investigation of incidents in certain circumstances and provide procedures for the conduct of that investigation.

3. Establish a streamlined application for approval to participate for state, territory and Commonwealth government participating relying parties that are affected by machinery of government changes.

The consultation closes on 17 October 2025. 

FinTech Australia is considering making a submission. Please contact our Policy Team if you wish to provide feedback.

Proposal to extend class relief for intermediaries engaging in the secondary distribution of a second stablecoin 

ASIC has announced it has granted class relief for intermediaries engaging in the secondary distribution of the first AFS licenced stablecoin issuer, Macropod.

ASIC is now consulting on a proposal to extend the class relief to a second named stablecoin issuer. 

FinTech Australia is considering making a submission. Please contact our Policy Team if you wish to provide feedback.

$5 billion Net Zero Fund

The Department of Industry, Science & Resources is consulting on establishing a $5 billion Net Zero Fundas part of the National Reconstruction Fund.

The Net Zero Fund’s proposed scope is to provide $5 billion in funding to:

• support large industrial facilities seeking to decarbonise, including investing in the technologies and capital infrastructure required to transition to lower emissions or more productive processes

• support scale up of manufacturing renewable and low emissions technologies.

The consultation closes on 15 October 2025. FinTech Australia does not intend to make a submission. Please contact our Policy Team if you wish to provide feedback.

Low risk non-cash payment facilities

ASIC is consulting on remaking a legislative instrument that provides exemptions for some low risk non-cash payment facilities from aspects of the Corporations Act 2001.

The regulator is seeking views on remaking the ASIC Corporations (Non-cash Payment Facilities) Instrument 2016/211.

The consultation closes on 8 October 2025. FinTech Australia does not intend to make a submission. Please contact our Policy Team if you wish to provide feedback.

OTHER NEWS

• ASIC has indicated it expects to finalise its controversial proposed changes to INFO 225 in coming weeks.

• The ACCC has released Consumer Data Right (CDR) guidance to assist accredited data recipients (ADRs) considering use cases involving third party data sharing. The new guidance clarifies that provided a consumer makes a clear and informed choice, use cases which enable a consumer to further share their own CDR data that an ADR has disclosed to them, or to consent to an ADR disclosing their data to an account they hold with a third party, are unlikely to raise compliance concerns for the ACCC.

• The ATO has released its R&D tax incentive transparency report for FY23. The report analyses R&D data and notes that in FY23 claims totalled a cumulative $16.2 billion.

• The insurer Zurich has launched a new product adjusting insurance premiums based on data disclosed through the CDR.

• The Australian Finance Industry Association (AFIA) has launched a Finance Industry Code of Practice for the non-bank lending and specialist banking sector.

• ASIC has published a media release, report and progress update on its surveillance of the private credit sector identifying mixed governance practices and standards across the private credit sector. The Financial Services Council has indicated it will be developing standards to enhance governance disclosure practices in private credit and private markets more broadly.

• The Australian Signals Directorate (ASD) has released an information security manual on approved cryptographic algorithms, key sizes and parameters. In response to anticipated developments in quantum technology, the manual recommends ceasing the use of traditional asymmetric cryptography by the end of 2030. Instead, ASD recommends using post-quantum ASD-approved cryptographic algorithms.

• The RBA’s Payments System Board has released its 2025 annual report.

• The RBA has released its 2025 Assessment of the ASX Clearing and Settlement Facilities, in which the Bank downgraded the ASX's performance against several of the Bank’s Financial Stability Standards. The RBA identified a need for foundational changes to the ASX's governance, culture and risk management processes

• The eSafety Commissioner has registered new industry-drafted codes to protect children from harmful age-inappropriate content. The six codes apply to online services including app stores, social media services, gaming services, pornography websites, generative AI services and AI companion chatbots, equipment manufacturers and suppliers.

• The WA Department of Energy and Economic Diversification has opened applications for innovation booster and commercialisation bridge grants from its New Industries and Innovation Fund.

WE ARE WORKING ON SUBMISSIONS TO THESE CONSULTATIONS

1. Treasury's exposure draft on digital asset & tokenised custody platforms licensing;

2. ASIC’s regulatory simplification project; and

3. Issues papers connected to the Strategic Examination of Research and Development.

WE RECENTLY MADE SUBMISSIONS TO THESE CONSULTATIONS

1. RBA Consultation – Merchant Card Payment Costs and Surcharging (with the assistance of our policy partner, K&L Gates);

2. Productivity Commission - Harnessing data and digital technology (with the assistance of our policy partner, Ashurst);

3. Cyber Security Strategy – Horizon 2 Policy Discussion Paper; and

4. Treasury's Compensation Scheme of Last Resort special levy consultation.

See other FinTech Australia submissions on our website.

Members interested in contributing any of the submissions should reach out to our Policy Team.

FinTech Australia regularly makes submissions to consultations across a wide range of policy and regulatory issues. Communications about how to get involved in these processes are distributed to our Policy Working Group membership. If you would like to be added to a distribution list for this, please contact our Policy Team.