The Australian Securities and Investments Commission (ASIC) has reminded digital asset providers that they have less than two months remaining to submit Australian Financial Services (AFS) licence applications or variations, warning that firms face potential civil and criminal penalties if they miss the 30 June 2026 deadline.
According to ASIC, providers offering services linked to digital asset financial products must determine whether they require a new AFS licence or a variation to an existing licence and lodge the relevant application by 30 June 2026. After that date, ASIC's sector-wide no-action position will lapse, leaving unlicensed firms exposed to enforcement action under Australia's financial services laws.
ASIC noted that breaches of the licensing requirements can attract civil and criminal penalties of up to 10% of a firm's annual turnover. The regulator emphasised that its no-action position, which was published in October 2025, was introduced to give providers time to absorb updated guidance and either seek new authorisations or amend existing ones. ASIC has stressed that the position is not a safe harbour against private litigation or enforcement by regulators other than ASIC and that it will expire for all firms on the same date.
Wider range of digital asset products captured
ASIC's Information Sheet 225, updated last year, now treats stablecoins, wrapped tokens, tokenised securities and digital asset wallets as financial products under the Corporations Act. This change expands the scope of the AFS licensing perimeter, bringing a broader segment of the local crypto industry under the financial services regime than under the previous interpretation, which was focused on platforms trading conventional digital tokens.
ASIC stated that licensing digital asset firms enhances investor protections and provides greater certainty for providers operating within the law.
Additional steps for market and clearing licences
Firms seeking an Australian Market Licence or a Clearing and Settlement facility licence must complete an extra step ahead of the same 30 June 2026 deadline. These providers are required to notify ASIC in writing of their intention to apply and to hold a pre-application meeting with the regulator before the cut-off date.
Forthcoming digital assets framework
The Corporations Amendment (Digital Assets Framework) Act 2026, which passed parliament on 1 April, received Royal Assent on 8 April and will commence on 9 April 2027. The legislation establishes dedicated authorisations for digital asset platforms and tokenized custody platforms, both of which will be supervised by ASIC. The new framework is intended to sit alongside the existing AFS licensing regime that already applies to a growing range of digital asset financial products.
