According to CoinDesk, Australia’s securities regulator ASIC said that many crypto assets are considered financial products, which increases the regulatory burden and may prompt companies to move to other countries.

Speaking at the Australian Financial Review’s Crypto Summit, ASIC’s Alan Kirkland said many widely traded crypto assets are financial products that require a license under existing laws.

The comments sparked concerns about tighter regulation that could impose onerous conditions and drive businesses out of Australia. Amy-Rose Goodey from the Digital Economy Council said businesses felt uncertain and might explore overseas opportunities.

Michael Bacina of law firm Piper Alderman believes the comments should prompt urgent consultations between the industry and policymakers. ASIC has taken legal action against crypto companies, including in the case against Finder Wallet.

Kate Cooper of Zodia Custody said that many crypto companies find the current situation in Australia unbearable and plan to move to regions with clearer regulations such as Dubai and Singapore. Australia's crypto regulation still has many gray areas, and new regulations are expected to be introduced as early as mid-2025.