MIU - Issue 172 - October 2025
Issue 172 of the Market Integrity Update covers regulatory developments and issues affecting markets in October 2025.
Join us at the National Press Club on 5 November to hear ASIC's regulatory roadmap for public and private markets
We invite you to join ASIC Chair Joe Longo at the National Press Club of Australia on Wednesday 5 November as he unveils the agency's response to our discussion paper on the evolving changes in capital markets and findings on private credit surveillance.
In his address, Open for opportunity: Taking charge of the future of our financial markets, Mr Longo will lay out the agency’s regulatory roadmap to support key areas central to the future of our capital markets. He will also set out the agency’s priorities for ensuring strong, efficient, and globally competitive markets.
As Australia’s financial landscape evolves, now is the time to consider critical questions. Are we attractive to international investment? Are we empowering investors or exposing them to new risks? And how do we prevent today’s opportunity becoming tomorrow’s crisis?
Event details:
When: 11:30 am - 1:30 pm, Wednesday November 5, 2025
Where: National Press Club Of Australia, 16 National Circuit, Barton, Canberra, ACT, 2600
For further details and to book tickets, please visit the National Press Club of Australia website.
Updated digital assets guidance supports innovation and boosts investor protection
ASIC has updated its digital assets guidance (25-250MR), Information Sheet 225: Digital assets: Financial Products and Services (INFO 225), clarifying how existing financial services laws apply to digital assets - giving investors improved protections and providing firms with greater certainty to operate and innovate.
The updated guidance confirms that products such as stablecoins, wrapped tokens, tokenised securities and digital asset wallets are among the digital asset products that ASIC considers to be financial products.
ASIC also confirmed transitional support ahead of the Government’s proposed law reforms.
ASIC Commissioner Alan Kirkland said, ‘Many widely traded digital assets are financial products under current law – and will remain so under the Government’s proposed law reform – meaning many providers require a financial services licence. Licensing ensures consumers receive the full suite of protections under the law and allows ASIC to act when poor practices lead to harm.’
ASIC acknowledges that firms will need time to review the updated guidance and apply for licences and has therefore issued a sector-wide no-action position until 30 June 2026.
ASIC has made an in-principle decision to grant proposed regulatory relief for distributors of certain stablecoins and wrapped tokens (CS 32), and certain relief for custodians of digital assets that are financial products. ASIC welcomes feedback from industry on its proposals by 5pm AEST on 12 November 2025. Submissions should be sent to fintech@asic.gov.au.
ASIC also released a summary of feedback from submissions to Consultation Paper 381 Updates to INFO 225: Digital Assets: Financial Products and Services (CP 381). Feedback from the consultation informed the no-action position, and ASIC’s decision to provide the proposed relief and include additional examples in the guidance.
ASIC will also factor in the current no-action position when considering historical conduct but will continue to act against egregious conduct where we see significant consumer harm or widespread systemic misconduct.
For more information:
- Media release (25-250MR) Updated ASIC guidance supports digital asset innovation and boosts investor protection (29 October 2025)
- Information Sheet 225 Digital assets: Financial Products and Services (INFO 225)
- Consultation 32 Proposed relief for eligible stablecoins and wrapped tokens, and extension of omnibus accounts for digital asset custody (CS 32), and
- Consultation Paper 381 Updates to INFO 225: Digital assets: Financial products and services (CP 381).
2025-26 priorities for supervising market intermediaries
We are pleased to share ASIC’s Corporate Plan 2025-26 and the five strategic priorities that will guide our supervision of market intermediaries in the year ahead. The agency’s strategic priorities will shape the key projects and regulatory activities that ASIC’s Markets Group will undertake this year:
- Drive integrity and transparency across markets
- Improve consumer outcomes
- Support better retirement outcomes and member services
- Strengthen operational digital and data resilience and safety
- Strengthen market disclosure and professional conduct
Our Corporate Plan and strategic priorities reflect the opportunities and challenges of Australia’s evolving financial landscape, including changing capital markets, technological transformation, uncertainty and resilience and superannuation growth alongside the risk of exploitation.
In our key projects and regulatory activities, we remain committed to promoting market integrity, resilience and fair, honest and professional business practices fundamental to maintaining trust and confidence in Australia’s financial system.
We encourage you to use these strategic priorities, projects and regulatory activities as a reference for your compliance, supervisory and risk management programs that support your business activities, and to prepare for your interactions with ASIC.
As part of our multi-year regulatory simplification program, we are also focusing on what we can do, within ASIC’s powers, to address regulatory complexity. In September 2025, we published our regulatory simplification report (REP 813) setting out our progress and seeking feedback on initiatives we are undertaking.
We invite your further ideas and ways to simply and improve regulation, including the market integrity rules.
Find more information on ASIC’s priorities for the supervision of market intermediaries.
Act now to protect your systems: Transitioning to post-quantum cryptography
Rapid advances in quantum computing pose a significant threat to the cryptographic systems that protect Australia’s financial markets.
When available, cryptographically relevant quantum computers (CRQCs) will be capable of breaking widely used cryptographic algorithms which currently underpin secure communications, digital signatures, and data integrity.
ASIC encourages market participants to adopt proactive risk management and structured planning for post-quantum cryptography (PQC) migration. Now is the time to begin planning as the transition to PQC is complex and will require years of work.
The LATICE framework outlines five, high-level phases for this transition:
- Locate and inventory the use of traditional vulnerable cryptography
- Assess the value and sensitivity of systems and data protected by these algorithms
- Triage systems and prioritise transitions based on risk and impact
- Implement PQC or hybrid algorithms across systems, and
- Communicate with vendors and stakeholders and educate relevant teams on PQC.
The Australian Cyber Security Centre has published guidance on quantum threats and migration strategies, and the Bank for International Settlements has released a paper highlighting the urgency for financial institutions to act. Migration to PQC is already underway in the payments sector and internationally.
The quantum era is approaching. Participants should be planning their PQC transition now - before today’s secure systems become tomorrow’s vulnerabilities.
Recent enforcement actions and outcomes
In October, we announced the following:
Victorian man sentenced in Cann Group insider trading case
Antonio Stella, of Donvale, Victoria, has been sentenced to 11 months imprisonment and ordered to pay a penalty of $225,447.24 for insider trading in relation to medicinal cannabis company, Cann Group Limited (Cann Group).
He is to be released forthwith upon entering a recognisance in the amount of $1,000 to be of a good behaviour period of 12 months.
On 1 October 2025, Dr Stella pleaded guilty to two counts of insider trading while in possession of information about an upcoming Cann Group share placement before it was publicly announced in July 2021.
Read the media release.
ASIC cancels AFS licence of CPG Research & Advisory
ASIC has cancelled the Australian financial services (AFS) licence of CPG Research & Advisory Pty Ltd (CPG), effective from 7 October 2025.
The AFS licence was cancelled after:
- ASIC became aware that CPG had ceased to carry on a financial services business, and
- CPG failed to pay industry funding levies which were outstanding for over 12 months.
CPG has the right to appeal to the Administrative Review Tribunal for a review of ASIC's decision.