Australia Urged to Embrace Tokenization, Warns ASIC Chairman

Longo’s statement underlines the urgent need for Australia to embrace tokenization as existing and potential opportunities in global financial markets are significant and rapidly evolving.

The Australian Securities and Investments Commission’s Chairman, Joe Longo, highlighted the need for urgent action on asset tokenization. He stressed that Distributed Ledger Technology is transforming capital markets worldwide, citing Switzerland and JPMorgan’s tokenization activities. Australia faces regulatory challenges as stablecoins, wrapped tokens, and tokenized securities are now classified as financial products. Service providers must acquire licenses by June 2026.

The global tokenized asset market is set to potentially reach $16 trillion by 2030, increasing pressure on countries like Australia to update regulations. Effective June 2026, businesses dealing in tokenized assets will need a financial license, raising compliance demands but providing greater stability. The ASIC’s Innovation Hub continues to support fintech adaptations to evolving regulations, encouraging proactive compliance.

Joe Longo’s comments reflect a strategic shift in Australia’s regulatory landscape, which could have long-term economic implications. Historical trends show significant compliance challenges with sweeping regulatory changes. This development might result in liquidity migration for non-compliant operations by mid-2026.

Quote:

Australia risks falling behind in capital markets if it does not embrace tokenization and other emerging technologies. – Joe Longo, Chairman, ASIC