Australia sets Sept 30 deadline for crypto firms to secure licences

Australia’s securities regulator, the Australian Securities and Investments Commission (ASIC), issued a final reminder on 2 September that crypto firms benefiting from temporary enforcement relief must submit a licence application by 30 September. Failure to do so could trigger civil and criminal action from 1 October, with fines potentially reaching 10 % of a company’s annual turnover.

Licence routes and deadline

Companies providing digital‑asset products or services that qualify as financial products under existing law must apply for one of the following licences before the deadline:

• Australian Financial Services (AFS) licence – new application or variation to an existing licence.
• Australian Market Licence – for firms operating a market for digital assets.
• Clearing and Settlement Facility licence – for entities providing settlement infrastructure.

Applicants must notify ASIC in writing of their intent, attend a pre‑application meeting and satisfy ASIC’s competence, financial resources, compliance and risk‑management requirements.

Scope of the licensing requirement

ASIC’s guidance clarifies that the licence requirement depends on the rights attached to each product, not merely its technical description. Examples include:

• Custody services for digital assets.
• Wrapped tokens and stablecoins that function as financial products.
• Staking arrangements and investment contracts.

Bitcoin and some other native tokens may not be financial products on their own, but related services, derivatives or investment schemes can fall within the licensing regime. The High Court recently affirmed that a fixed‑yield crypto product required an AFS licence.

Temporary relief ends

ASIC introduced a sector‑wide no‑action position in December 2024, giving eligible firms time to assess the updated guidance and prepare applications. The original deadline of 30 June 2026 was extended by three months, moving the final date to 30 September 2026. The relief is not a licence; it merely suspends enforcement while firms comply with the conditions. Once the relief expires on 1 October, ASIC may investigate unlicensed activity.

Future regulatory framework

The September deadline relates to existing Australian financial services law and is separate from the Digital Assets Framework that will commence on 9 April 2027 under the Corporations Amendment (Digital Assets Framework) Act 2026. The upcoming framework will create dedicated licensing categories for digital‑asset platforms and token‑custody providers, but existing authorisations will remain relevant.

Current licensing activity

Since ASIC updated its guidance in October 2025, more than 45 crypto‑related licence applications have been recorded, up from roughly 30 after the original June deadline was extended. ASIC has not disclosed the breakdown of applicants by service type.

What firms need to do

Crypto businesses must assess whether their activities require an AFS, market or clearing‑and‑settlement licence and decide by 30 September whether to apply or cease the affected services. Legal advice may be necessary to interpret product rights and compliance obligations. Submitting an application does not guarantee approval, and operating while an application is pending does not protect a firm if the deadline is missed.