ASIC gives crypto firms more time to secure AFS licences

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ASIC gives crypto firms more time

Highlights

ASIC extended its no-action position for crypto firms to Sept. 30, 2026.
The previous deadline was June 30, 2026.
Firms dealing with regulated digital asset products may need an AFS licence.
The extension also covers market and clearing license applicants.

Regulator gives firms three more months

According to CoinGape, the extension gives digital asset businesses an additional three months to apply for, or vary, an Australian Financial Services licence. The previous deadline was June 30, 2026.

An AFS licence is required for companies providing regulated financial services in Australia. For crypto firms, the requirement can apply to businesses dealing with stablecoins, tokenized assets, investment products, custody services, digital wallets and trading platforms, depending on how those products are structured.

ASIC updated its regulatory guidance in October 2025 through Information Sheet 225, known as INFO 225. The guidance clarified when digital asset products may be treated as financial products under existing Australian law. That update placed more crypto firms inside the country’s licensing framework and increased pressure on businesses to formalize their regulatory status.

The regulator also expanded the scope of its relief. The no-action position now covers firms operating under, or entering into, authorized representative and intermediary authorization arrangements with existing AFS licence holders.

Licensing push broadens across the sector

The change comes as crypto firms in Australia adjust to a more formal regulatory environment. Coinbase secured an AFS licence in Australia in April, highlighting how major platforms are moving to meet local requirements.

ASIC had previously urged digital asset businesses to act quickly before the earlier June deadline. Firms that continue operating without the required licence may breach financial services laws and face penalties, including significant fines.

The extension also applies to firms seeking an Australian Market Licence or a Clearing and Settlement facility licence. ASIC said those businesses must notify the regulator in writing of their intention to apply and hold a pre-meeting by the same September deadline.

The licensing effort is part of a wider reset in Australia’s approach to crypto oversight. The country passed its Digital Asset Framework in April, as policymakers moved to create a national structure for the sector while keeping crypto activity within existing financial-market protections.

Australia moves crypto into the licensing system

The extension is not a retreat from regulation. It gives firms more time, but it also confirms that Australia expects crypto businesses offering financial products to operate under formal licensing rules.

The most affected companies are likely to be those involved in stablecoins, wrapped tokens, tokenized securities, custody, wallets, and trading platforms. For smaller firms, the extra three months may ease the risk of disruption. For larger operators, the deadline reinforces the need to align crypto products with Australia’s financial services regime.

ASIC’s decision gives the industry breathing room, but the direction remains clear: digital asset businesses in Australia are being pulled closer to traditional financial regulation.

As a reminder, in 2025 the Australian government introduced a new regulatory framework for digital assets, designed to provide greater clarity for industry participants and address risks related to consumer protection and market integrity.

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