ASIC has extended its sector-wide no-action position for digital asset firms providing financial services, giving them an additional three months to apply for or vary an Australian Financial Services (AFS) licence. The no-action position will now run until 30 September 2026, beyond the original deadline of 30 June 2026.
The regulator is also expanding the scope of its no-action position to include digital asset businesses that operate under, or enter into, authorised representative arrangements with an AFS licence holder. It further covers intermediary authorisation arrangements with an AFS licence holder, widening the range of business models able to rely on the relief during the transition period.
ASIC’s decision is described as a pragmatic response to industry transition challenges. The extension and broader scope are intended to support an orderly path to licensing for digital asset firms, while maintaining a focus on investor protection and market integrity.
Licensing timelines and requirements
The 30 September 2026 deadline extension also applies to firms that require an Australian Market Licence or a Clearing and Settlement (CS) facility licence. These firms must notify ASIC in writing of their intention to apply and are required to hold a pre-meeting with the regulator as part of the licensing process.
Since October 2025, ASIC has received approximately 30 licence applications from digital asset businesses. These applications followed updates made in October 2025 to Information Sheet 225, titled Digital assets: Financial products and services (INFO 225).
Regulatory guidance on digital assets
The October 2025 update to INFO 225 clarified how existing laws apply to digital assets and related products. According to ASIC, these changes strengthened investor protections and provided firms with greater certainty to operate and innovate within the current regulatory framework.
The original no-action position for digital asset firms was issued on 29 October 2025, with an initial deadline of 30 June 2026. The updated deadline of 30 September 2026 extends the period during which eligible firms can continue to operate while progressing their licence applications or variations.
ASIC’s stance that the financial product definitions in the current law are broad and technology neutral was recently confirmed in the High Court. This position underpins the regulator’s approach to applying existing financial services law to digital assets and related financial products.
