The Australian Securities and Investments Commission (ASIC) has reminded digital asset firms that they have less than two months to lodge an Australian Financial Services (AFS) license application or risk falling foul of the country’s financial services laws.
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The regulator said today (Monday) that providers offering services tied to digital asset financial products must decide whether they need a new AFS license, or a variation to an existing one, and apply by June 30, 2026. After that date, ASIC’s sector-wide no-action position falls away, exposing unlicensed firms to civil and criminal penalties that can reach up to 10% of annual turnover.
Companies seeking an Australian Market Licence or a Clearing Clearing Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Clearing is a general term that simply means many different things depending on the subject and related industry. Most commonly, this refers to the reciprocal exchange between banks of checks and drafts, and the settlement of the differences, or the total of claims settled at a clearinghouse. In finance and banking, the word clearing has different meanings depending on the more specific business model. Moving checks from the bank where they were deposited to the bank on which they were drawn. Th Read this Term and Settlement facility license face an additional step. They must notify ASIC in writing of their intention to apply and hold a pre-application meeting before the same June 30 deadline.
ASIC’s Information Sheet 225, refreshed last year, now classifies stablecoins, wrapped tokens, tokenised securities and digital asset wallets as financial products under the Corporations Act.
That definition pulls a much wider slice of the local crypto industry into the AFS licensing perimeter than the previous interpretation, which centered on platforms trading conventional digital tokens.
What the No-Action Window Actually Buys
The no-action letter, published in October 2025, gave providers a runway to digest the updated guidance and either apply for fresh authorizations or vary existing ones.
ASIC has said the position is not a safe harbor against private litigation or non-ASIC enforcement, and it expires for everyone on the same date.
Some firms can comply by becoming an authorized representative of an existing AFS licensee rather than securing their own license, depending on the services they provide.
ASIC has also kept in place earlier relief instruments covering the distribution of certain stablecoins and wrapped tokens. Those carve-outs currently apply to a single issuer, Catena Digital, which issues the AUDM stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term.
The licensing pipeline has already started to swell. ASIC granted 290 new AFS licenses in the financial year to June 2025 while cancelling or suspending 215 others, with applications from digital asset operators rising notably, Commissioner Alan Kirkland said at the time.
How Australia’s Approach Compares to Global Peers
Australia is moving toward a destination several other major jurisdictions have already reached, though by a different route.
The European Union’s Markets in Crypto-Assets regulation took full effect in December 2024, requiring exchanges, wallet providers and stablecoin issuers to obtain a MiCA license to operate across the bloc. Penalties for non-compliance under MiCA can reach 12.5% of annual turnover, slightly above Australia’s threshold.
In Asia, Hong Kong opened its stablecoin licensing regime in April and granted its first approvals to HSBC and Anchorpoint. Japan moved its crypto sector under the Financial Instruments and Exchange Act earlier this year and banned insider trading in digital assets.
Singapore continues to license payment service providers under its 2019 Payment Services Act.
Enforcement Track Record Adds Pressure
Recent enforcement gives the deadline real teeth. The Federal Court of Australia fined Binance Australia Derivatives AU$10 million in March after the company admitted misclassifying more than 85% of its local clients.
In December 2024, Bit Trade, the local operator of Kraken, paid AU$8 million over a leveraged margin extension product the court found breached design and distribution obligations.
ASIC has also flagged offshore venues offering high-leverage products to Australians, including a public warning against Bitget over its 125x crypto futures. The regulator has signalled that the same scrutiny will follow firms that miss the AFS license window.
A Second Deadline Comes in 2027
The June 30 cutoff is not the end of the road. The Corporations Amendment (Digital Assets Framework) Act 2026, which cleared parliament on April 1, received Royal Assent on April 8 and commences April 9, 2027. It introduces dedicated authorizations for digital asset platforms and tokenized custody platforms, both supervised by ASIC.
Many firms that secure an AFS license under the current INFO 225 guidance will need to add DAP or TCP authorizations once the new regime starts. ASIC has published a roadmap covering its consultation timetable and the operational standards it expects to set during the 18-month implementation period.
“Licensing firms improves investor protections and provides greater certainty to providers to operate under the law,” ASIC said in its statement.
