The Australian Securities and Investments Commission (ASIC) has identified cryptocurrency regulatory loopholes as a significant risk for 2026. The agency highlighted concerns over rapidly expanding crypto, payments, and AI companies that operate on the regulatory fringes, potentially exposing consumers to unlicensed advice and misleading practices. This warning coincides with Australia's progress on the Companies Act Amendment (Digital Assets Framework) Bill 2025, which seeks to establish a regulatory framework for companies managing clients' digital assets, mandating an Australian financial services license. ASIC noted that while some firms operate legally outside current regulations, others intentionally bypass them, increasing regulatory uncertainty.