Digital Asset Firms Receive More Time to Seek AFS Licensing
Australian digital asset firms have three more months to secure regulatory approvals after the Australian Securities and Investments Commission (ASIC) extended its sector-wide no-action position to Sept. 30, 2026. The relief covers firms offering financial services involving digital assets that may fall under existing financial product laws.
The extension gives firms more time to apply for or vary an Australian Financial Services (AFS) licence. ASIC also expanded the relief to businesses using authorized representative or intermediary authorization arrangements with an AFS licence holder.
The regulator said:
“ASIC’s decision reflects a pragmatic response to industry transition challenges.”
The Sept. 30 deadline also applies to firms seeking an Australian Market Licence or Clearing and Settlement facility licence. Those firms must notify ASIC in writing of their intention to apply and hold a pre-meeting with the regulator.
The no-action position does not change Australian law or create a permanent licensing exemption. It sets out when ASIC does not intend to take enforcement action against eligible firms that meet its transition conditions.
INFO 225 Aligns With Australia’s Digital Asset Framework Reforms
ASIC has received about 30 licence applications from digital asset firms since updating Information Sheet 225 (INFO 225) in October 2025. INFO 225 sets out how existing financial services laws apply to digital assets and related products, giving firms clearer guidance on when licensing obligations arise.
The guidance explains that financial product definitions under current law are broad and technology-neutral, a position ASIC said the High Court has affirmed. It followed Consultation Paper 381, which outlined proposed updates to INFO 225, and the initial no-action position introduced alongside it, which was set to expire June 30, 2026.
ASIC stated:
“The extension and broader scope support an orderly path to licensing, while maintaining a focus on investor protection and market integrity.”
The relief is limited in scope, excluding crypto lending and earn products, most digital asset payment facilities outside eligible stablecoins, and derivatives beyond wrapped tokens. ASIC said it will continue to act against serious misconduct that causes significant consumer harm or systemic issues. The guidance also aligns with Australia’s broader Digital Asset Framework reforms, with INFO 225 intended to help firms understand their obligations under existing law as they prepare for licensing and operational requirements.
