What happened
The Australian Financial Complaints Authority (AFCA) announced that consumers using digital assets, stablecoins, tokenised securities, and digital wallets can now access its free dispute resolution service. This follows ASIC's updated guidance in Information Sheet 225 requiring firms providing financial product services to hold an AFS licence and join AFCA. AFCA has handled over 1,000 digital asset complaints over six years.
Why it matters here
Formal external dispute resolution provides a recourse mechanism for Australian retail investors facing issues with digital asset platforms. Investors can check AFCA's financial firm search tool to verify if their platform offers this key protection, establishing a clearer standard for operating within Australian financial regulations.
What to watch
Check AFCA's member register when selecting digital asset providers and monitor dispute volume trends in upcoming AFCA reports.
Source
afca.org.au