Australia designates crypto, AI as key regulatory risks

The Australian Securities and Investments Commission (ASIC) has identified cryptocurrencies, artificial intelligence (AI), and payment systems as key risks falling into regulatory gray areas, according to its 2026 outlook report. In the report released on Jan. 27, the regulator stated that its top priority for the year is to combat unlicensed operations and misleading advertising that exploit these legal ambiguities. ASIC specifically warned against the structural risks that arise when new financial services operate outside of existing licensing and disclosure frameworks, rather than focusing solely on the price volatility of virtual assets. While noting that the decision to formally regulate cryptocurrencies rests with the government, ASIC affirmed its commitment to clarifying licensing boundaries and increasing oversight of regulatory blind spots to minimize market disruption.