Australia Gives Crypto Firms More Time to Obtain Licenses

Australian companies operating in the digital asset sector have been granted an additional three months to secure the required regulatory approvals. The Australian Securities and Investments Commission (ASIC) has extended its "no-action relief" period until September 30, 2026.

The extension gives businesses more time to apply for an Australian Financial Services (AFS) licence or amend an existing one. The relief also applies to certain firms operating as authorised representatives or intermediaries of AFS licence holders.

The same deadline applies to companies seeking an Australian Market Licence or a licence for clearing and settlement facilities. Before submitting an application, businesses must notify ASIC of their intention and participate in a preliminary meeting with the regulator.

The extended transition period does not change the existing legal framework or remove the requirement to obtain the appropriate licences. ASIC has made it clear that it retains the authority to take enforcement action against companies involved in serious regulatory breaches.

Since updating Information Sheet 225 (INFO 225) in October 2025, the regulator has received around 30 licence applications from digital asset businesses. The guidance explains how Australia's existing financial services laws apply to digital assets and outlines the circumstances in which a licence is required.

ASIC emphasises that the current regulatory framework is broad and technology-neutral. Extending the transition period is intended to help businesses meet licensing requirements while maintaining investor protection and preserving market integrity.

The relief does not apply to several categories of services, including crypto lending, crypto earn products, most digital asset-based payment systems other than qualifying stablecoins, and derivatives beyond those involving wrapped tokens.