The Australian Securities and Investments Commission (ASIC) has issued a stark warning about the consumer risks posed by rapid innovation in digital assets, payments, and artificial intelligence. In its "Key issues outlook 2026" report, the corporate regulator highlighted significant regulatory gaps, expressing concern that consumers are exposed to unlicensed and fast-growing companies in these sectors.
The report argues that it is up to the government to determine if new products and services should fall under regulatory oversight. ASIC noted that while some entities operate legally outside current rules, others may actively seek to remain unlicensed, contributing to "perceived regulatory uncertainty." This behavior mandates that ASIC remains focused on monitoring regulatory boundaries and clarifying licensing rules throughout 2026.
This warning follows legislative efforts to address the oversight holes. In November 2025, lawmakers introduced the Corporations Amendment (Digital Assets Framework) Bill 2025, aimed at creating Australia's first set of rules for companies that hold digital assets for customers. Officials estimate this framework could add $24 billion annually to the economy through improved efficiency. The proposed law would require such platforms to obtain an Australian Financial Services license to operate.
ASIC Chair Joe Longo pointed to the pressure building on consumers, markets, and companies due to these regulatory uncertainties. He also highlighted the challenge of differing international rules, which creates confusion for businesses and uneven consumer protection.
Experts have echoed the call for clarity. Darcy Allen of RMIT University and the Digital Economy Council of Australia urged the government to "clearly define the regulatory perimeter by passing long-overdue licensing legislation." He stressed the need to balance regulation with encouraging experimental innovation. James Volpe, founder of Web3 education company uCubed, noted that licensing rules have improved but warned that consumer understanding of the technology remains a hurdle, stating, "These are not basic technologies, and it will take time and focus on education to ensure consumers are safe in this new landscape."
Allen also pointed to ASIC's Enhanced Regulatory Sandbox—which allows approved businesses to test services without a license for up to 24 months—as an opportunity to adopt better regulatory approaches. He concluded that 2026 will be a decisive year for Australia's technology policy, with major changes to digital platform competition and AI rules on the horizon.
