What regulations apply to stablecoins in Australia?

Overview

Stablecoins are increasingly used by Australian businesses for payments, invoicing, and treasury management. While there is no single law dedicated solely to stablecoins, their use is regulated through Australia’s existing digital asset, financial services, and anti-money laundering frameworks.

This article explains which regulations apply to stablecoins in Australia, how oversight is structured, and what businesses should understand before using stablecoins operationally.

Are stablecoins regulated in Australia?

Stablecoins are not currently governed by a standalone regulatory regime in Australia. Instead, they fall under a combination of existing laws that apply to digital assets, payment services, and financial crime prevention.

In practice, regulation focuses less on the token itself and more on how stablecoins are issued, transferred, custodied, and used by businesses and service providers.

The role of AUSTRAC and AML/CTF obligations

The primary regulatory body overseeing stablecoin activity in Australia is AUSTRAC, the national financial intelligence agency.

Businesses and service providers involved in stablecoin transactions may be subject to Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) obligations, including:

• Customer identification and verification (KYC)
• Transaction monitoring
• Record keeping and reporting
• Suspicious matter reporting

These obligations typically apply to digital currency exchanges, payment facilitators, and platforms that help businesses receive or convert stablecoins.

Stablecoins and financial services regulation

Depending on how a stablecoin is structured, additional regulatory considerations may apply.

Where stablecoins resemble stored-value arrangements or payment facilities, oversight may intersect with broader financial services laws. However, most commonly used stablecoins are currently treated as digital assets rather than traditional financial products.

Australian regulators have signalled that this area will continue to evolve as stablecoin adoption grows.

Reserve backing and issuer considerations

Regulatory scrutiny also extends to how stablecoins are issued and backed.

Authorities are particularly focused on:

• Transparency of reserve assets
• Risk management practices of issuers
• Operational resilience and governance

While Australian businesses are not responsible for regulating issuers themselves, understanding these factors is important when assessing compliance and counterparty risk.

Tax and reporting implications

Stablecoin transactions may carry tax and reporting obligations depending on how they are used.

Businesses should consider:

• Income recognition for stablecoin payments
• Record keeping for transaction values
• Interaction with GST or other tax obligations

Professional advice is often appropriate when integrating stablecoins into accounting and reporting workflows.

How regulation affects business use of stablecoins

For Australian businesses, regulatory compliance typically involves working with service providers that already operate within AUSTRAC-aligned frameworks.

This allows businesses to:

• Receive stablecoin payments compliantly
• Maintain clear transaction records
• Reduce regulatory uncertainty
• Operate within existing AML/CTF expectations

Regulation does not prevent businesses from using stablecoins, but it does shape how stablecoin payments are implemented responsibly.

Future regulatory developments

Australian regulators, including the Treasury and the Reserve Bank of Australia, continue to explore reforms related to digital assets and stablecoins.

Proposed frameworks may introduce clearer licensing, reserve requirements, or disclosure standards in the future. Businesses using stablecoins should stay informed as the regulatory landscape matures.

Key takeaways for Australian businesses

Stablecoins in Australia are regulated through existing digital asset and AML/CTF frameworks rather than a dedicated stablecoin law.

• AUSTRAC plays a central role in oversight
• Compliance focuses on transaction monitoring and reporting
• Regulation affects service providers more than end users
• The regulatory environment continues to evolve

Understanding how regulation applies is essential for businesses using stablecoins as part of their payment or treasury operations.

Related guides: do stablecoins require a bank account?, how faststables support stablecoin payments for businesses works, and how businesses use stablecoins for payments works.