ASIC flags crypto and AI oversight gaps for 2026

ASIC warns of regulatory gaps in crypto, payments, and AI for 2026, exposing consumers to risks. New legislation aims to close these gaps and strengthen protections.

Australia’s financial regulator, the Australian Securities and Investments Commission (ASIC), has highlighted significant regulatory gaps in the oversight of cryptocurrency, payments, and artificial intelligence sectors as a key risk for 2026. ASIC’s recent reports reveal that rapidly expanding companies in these areas often operate at the fringes of current regulations, exposing consumers to unlicensed advice and potentially misleading conduct. The regulator warns that some entities may intentionally avoid licensing, which contributes to regulatory uncertainty and inconsistent consumer protections. In response, the government has proposed the Corporations Amendment (Digital Assets Framework) Bill 2025. This bill aims to establish Australia’s first regulatory framework for businesses holding digital assets on behalf of customers, requiring platforms to obtain an Australian Financial Services Licence. Officials estimate that the measure could boost the economy by $24 billion annually. ASIC stresses the importance of increased vigilance and regulatory clarity to address these emerging risks and safeguard consumers as innovation accelerates in the financial sector.