Digital asset businesses are running out of time to apply for an Australian Financial Services (AFS) licence from ASIC or risk being in breach of financial services laws.
The corporate watchdog is warning financial services involving digital asset financial products must apply by 30 June 2026 for a new licence or a variation of their existing AFSL, before ASIC no-action position expires.
Unlicensed conduct carries serious civil and criminal penalties under law, including significant fines that could reach up to 10 per cent of annual turnover.
ASIC released updated guidance last year on what digital asset products are considered to be financial products, including stablecoins, wrapped tokens, tokenised securities and digital asset wallets.
Businesses that require an Australian Market Licence or Clearing and Settlement (CS) facility licence must notify ASIC in writing of their intention to apply and hold a pre-meeting with ASIC by 30 June.
“As part of updating Information Sheet 225 Digital assets: Financial products and services (INFO 225), ASIC granted a sector-wide no-action letter enabling providers to consider the guidance and, where applicable, apply for a new or varied licence until 30 June 2026,” ASIC said in a statement.
“Licensing firms improves investor protections and provides greater certainty to providers to operate under the law.”
Updated INFO 225 is aligned to and supports the Government’s broader work on the new laws that bring digital asset platforms (DAPs) and tokenised custody platforms (TCPs) under the financial services licensing regime from April 2027.
In April, the corporate watchdog set out a roadmap to integrate digital assets into Australia’s broader financial services framework within the next 12 months, ahead of the country’s first crypto legislation taking effect from April 2027.
ASIC plans to issue new regulatory guidance and operational standards as it implements laws bringing digital asset platforms (DAPs) and tokenised custody platforms (TCPs) under the financial services licensing regime from April 2027.
The reforms follow the passage of the Corporations Amendment (Digital Assets Framework) (DAF) Act 2026 on 1 April, which received Royal Assent on 8 April and will commence on 9 April 2027.
The DAF Act establishes an 18-month implementation period, with ASIC responsible for licensing, supervision, and enforcement under the new regime.
