ASIC signals tougher oversight for crypto, AI-driven finance and payments in 2026

Australia’s corporate watchdog has sharpened its focus on parts of the financial system where technology creates gaps in existing rules. In a forward‑looking policy paper ASIC singled out digital asset operators, payments systems and AI‑enhanced financial services as activities that can sit outside current licensing and disclosure regimes, exposing customers to conduct and disclosure risks. The regulator framed the problem as structural: firms clustering at unclear legal boundaries to avoid licence obligations. That framing sets ASIC’s 2026 priorities — drawing clearer lines around who must hold a licence and increasing scrutiny where firms exploit regulatory margins. The stance is reinforced by recent enforcement: a federal court imposed multi‑million dollar penalties for unlicensed and misleading crypto conduct, signalling readiness to litigate. International developments are sharpening domestic choices. U.S. executive and agency activity — including White House coordination and planned SEC–CFTC engagement to harmonise oversight — is converting policy momentum into an enforcement mosaic that raises procedural and legal risks for builders, including creators of non‑custodial and privacy‑focused tools. At the same time, the EU’s MiCA timetable and the UK’s planned authorisation windows are creating operational milestones that influence how Australian platforms plan product and cross‑border access. Law‑making frictions overseas (for example, debates over narrow safe harbours and definitions of “control” and “custody”) underline the risk that poorly‑worded rules or aggressive enforcement could sweep in wallets, validators or open‑source contributors. For consumers and market integrity the combined effect should be stronger protections and clearer remedies, but for some operators the compliance burden will be material: expect product rationalisation, delayed launches, or shifts in geographic focus. Smaller or offshore providers that relied on regulatory ambiguity will be most affected; larger incumbents with established compliance functions may gain competitive advantage. ASIC’s approach signals methodical tightening rather than immediate prohibition, but with concurrent international moves to operationalise licensing, regulatory outcomes next year will be more concrete and enforceable. Firms and developers should anticipate a period where legislative drafting, supervisory scrutiny and cross‑border market plumbing interact to reshape how crypto, payments and AI‑enabled financial services are offered in and from Australia.