Australia’s financial regulator issued a final warning on Sept. 2 to crypto businesses relying on temporary enforcement relief.
Summary
- September 30 is ASIC’s deadline for qualifying crypto firms to apply for required financial licences.
- Unlicensed firms operating outside ASIC’s relief conditions may face civil and criminal penalties from October.
- Potential fines can reach 10% of annual turnover for businesses breaching Australian financial services law.
- ASIC recorded more than 45 digital asset licence applications after updating its guidance in 2025.
- Australia’s new Digital Assets Framework begins April 9, 2027, following an eighteen month implementation period.
Qualifying firms have until Sept. 30 to apply for the licences required under existing financial services law.
The Australian Securities and Investments Commission said firms operating without authorization from Oct. 1 could face civil and criminal penalties. Potential fines may reach 10% of annual turnover.
ASIC has recorded more than 45 digital asset-related licence applications since it updated its guidance in October 2025. The figure rose from approximately 30 applications reported when the regulator extended its original June deadline.
The regulator’s warning applies to businesses providing digital asset products or services that qualify as financial products under existing law. It does not mean that every crypto asset or activity automatically requires the same licence.
ASIC’s crypto deadline covers several licence routes
Businesses that require an Australian Financial Services licence must submit a new application or request a variation to an existing licence by Sept. 30. The appropriate route depends on the products and services each company provides.
Firms that need an Australian Market Licence or a Clearing and Settlement facility licence face different conditions. They must notify ASIC in writing that they intend to apply and complete a pre-application meeting before the deadline.
ASIC’s updated Information Sheet 225 provides examples showing how financial product rules can apply to digital assets, custody services, wrapped tokens, staking arrangements and stablecoins. Companies must assess the rights attached to each product rather than relying only on its technical description.
Bitcoin and some other digital assets may not qualify as financial products by themselves. However, related services, investment arrangements or derivatives can still fall within the licensing regime.
The legal distinction has already received attention from Australian courts. In related coverage, crypto.news reported that the High Court ruled 7–0 that Block Earner’s fixed-yield product required a financial services licence.
ASIC’s temporary relief ends on Oct. 1
ASIC introduced its sector-wide no-action position after consulting the industry in December 2024. The relief gave eligible businesses time to review the updated guidance and prepare licence applications.
The regulator initially set June 30, 2026, as the deadline. It later extended the period by three months and expanded the arrangements to cover some authorized representatives and intermediary structures. As crypto.news reported, the extension moved the licensing deadline to Sept. 30.
The no-action position is not a licence, legal exemption or confirmation that a company’s activities comply with the law. It only describes circumstances in which ASIC does not intend to pursue enforcement during the transition.
Companies lose that protection if they fail to meet its conditions. From Oct. 1, ASIC may investigate businesses that appear to provide regulated financial services without authorization.
The warning about fines of up to 10% of annual turnover describes the possible maximum penalty. It does not mean that every unlicensed firm will automatically receive a fine at that level. Courts determine penalties after considering the applicable law and circumstances of each case.
Australia’s 2027 crypto framework is a separate regime
The Sept. 30 deadline concerns duties that already exist under Australian financial services law. It is separate from the Corporations Amendment (Digital Assets Framework) Act 2026.
Parliament passed that legislation on April 1. It received Royal Assent on April 8 and will take effect on April 9, 2027, according to ASIC’s implementation roadmap.
The law establishes dedicated rules for digital asset platforms and tokenized custody platforms. ASIC will license and supervise companies covered by the new categories.
Existing authorizations will remain relevant after the framework begins. Some businesses may therefore need to obtain licences under the current rules and later vary those licences to cover activities regulated by the 2027 framework.
ASIC plans to consult on standards and publish further regulatory guidance during the implementation period. The regulator will also continue meeting with companies and industry groups as the new licensing system takes shape.
Previous crypto.news coverage examined ASIC’s developing approach to stablecoins and wrapped tokens, including how particular products may fall within existing financial regulation.
Crypto firms must decide whether to apply or stop services
Businesses relying on the relief must determine before Sept. 30 whether their activities require an AFS, market or clearing and settlement licence. Firms uncertain about their position may need legal advice based on their products, custody arrangements and customer agreements.
Submitting an application does not guarantee approval. Applicants must satisfy ASIC’s requirements concerning competence, financial resources, compliance systems, risk management and dispute resolution.
Companies that cannot meet the relief conditions may need to stop providing affected services from Oct. 1. Operating while an application is being prepared will not necessarily protect a firm if it missed the applicable deadline.
ASIC’s latest figures show that more than 45 businesses have entered the licensing process. The regulator has not identified those applicants or disclosed how many applications involve exchanges, custodians, tokenization providers or other services.
Enforcement activity may become clearer after the temporary relief expires. ASIC has not announced a specific investigation or prosecution connected to the deadline, but it has stated that noncompliant firms could face both civil and criminal action.
