Australia’s financial regulator has issued a final warning to crypto businesses operating under temporary enforcement relief, giving them until 30 September to apply for licences required by existing financial services law.
The Australian Securities and Investments Commission (ASIC) said firms providing regulated services without authorisation from 1 October could face civil and criminal penalties.
The maximum potential fine could be 10% of a company’s annual turnover, although ASIC stressed that this would not be an automatic penalty for every unlicensed business. Courts would decide the outcome in each case after considering the relevant law and circumstances.
More than 45 applications connected to digital asset-related licences have been recorded by ASIC since it updated its guidance in October 2025. That figure has increased from about 30 applications, which were reported when the regulator extended its original deadline.
The warning applies to businesses offering digital asset products or services that are considered financial products under Australian law. It does not mean that every crypto asset or activity automatically requires the same type of licence.
Companies that need an Australian Financial Services licence must either submit a new application or seek a variation to an existing licence by 30 September. The correct process depends on the products and services offered by each business.
Firms that require an Australian Market Licence, or a Clearing and Settlement facility licence, face separate requirements. 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 includes examples of how financial product rules may apply to digital assets, custody services, wrapped tokens, staking arrangements and stablecoins. The regulator said firms must consider the rights attached to a product, rather than relying solely on the technology or label used to describe it.
Bitcoin and some other digital assets may not be financial products in themselves. However, services linked to them, investment arrangements and derivatives may still fall within Australia’s licensing regime.
The legal distinction has also been considered by Australian courts. In related coverage, crypto.news reported that the High Court ruled unanimously, by 7-0, that Block Earner’s fixed-yield product required a financial services licence.
ASIC introduced its sector-wide no-action position after consulting the industry in December 2024. The arrangement gave eligible businesses time to assess the regulator’s revised guidance and prepare their applications.
The original deadline was 30 June 2026. ASIC later extended the period by three months, moving the deadline to 30 September, and broadened the arrangements to include some authorised representatives and intermediary structures.
However, the no-action position is not a licence or a legal exemption. Nor does it confirm that a company’s activities comply with Australian law. It sets out only the circumstances in which ASIC does not intend to pursue enforcement while businesses move through the transition.
Companies can lose that protection if they fail to meet its conditions. From 1 October, ASIC may investigate businesses that appear to be providing regulated financial services without the necessary authorisation.
The 30 September deadline relates to obligations 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 1 April. It received Royal Assent on 8 April and is due to take effect on 9 April 2027, according to ASIC’s implementation roadmap.
The new law creates dedicated rules for digital asset platforms and tokenized custody platforms. ASIC will be responsible for licensing and supervising companies covered by those categories.
Existing authorisations will continue to matter once the new framework begins. Some firms may therefore need to obtain licences under the current regime and later vary them to cover activities regulated by the 2027 framework.
ASIC plans to consult on standards and issue further regulatory guidance during the implementation period. It will also continue discussions with companies and industry groups as the new licensing system is developed.
Previous crypto.news coverage examined ASIC’s evolving approach to stablecoins and wrapped tokens, including the circumstances in which particular products could fall within existing financial regulation.
Businesses relying on the temporary relief must establish before 30 September whether they need an Australian Financial Services, market, or clearing and settlement licence. Companies that remain uncertain may need legal advice based on the products they offer, their custody arrangements and their customer agreements.
Submitting an application does not guarantee that it will be approved. Applicants must meet ASIC’s requirements on competence, financial resources, compliance systems, risk management and dispute resolution.
Firms unable to satisfy the conditions of the relief may have to stop providing affected services from 1 October. Continuing to operate while an application is being prepared will not necessarily protect a business if it has missed the relevant deadline.
ASIC has not named the more than 45 businesses that have entered the licensing process. It has also not disclosed how many applications involve exchanges, custodians, tokenization providers or other types of digital asset service.
Enforcement activity could become clearer after the temporary relief expires. ASIC has not announced any specific investigation or prosecution linked to the deadline, but it has warned that non-compliant firms could face both civil and criminal action.
