Australia Sets September 30 Deadline for Crypto Firm Licensing

The financial regulatory body in Australia issued its last warning on September 2 to crypto companies depending on temporary enforcement relief. These businesses will need to apply for the necessary licence by September 30 in order to comply with current financial services regulations. The Australian Securities and Investments Commission (ASIC) said that businesses operating without being licensed from October 1 would be liable to legal consequences. The potential fines could amount to 10 percent of annual turnover. ASIC has seen more than 45 applications for licensing related to digital assets since it revised its guidelines in October 2025.

Digital Asset Services May Require Different Types Of Licences

As per ASIC, this number increased from about 30 cases after the regulator had extended the initial deadline of June. The warning from the regulator applies to firms that offer digital asset services that can be considered financial products under existing law. It doesn't necessarily mean that all cryptocurrencies or crypto activities demand the same license. The guidelines provided by ASIC also say that companies requiring an Australian Financial Services (AFS) licence need to lodge a new application or apply for an amendment of their existing licence by September 30. It all depends on what products or services individual firms provide.

Organisations that require an Australian Market Licence or Clearing and Settlement facility licence must meet specific conditions. The organisations must provide written notification to ASIC of their intention to apply and attend a pre-application meeting prior to the deadline. Examples of the application of financial product rules to digital assets, custody services, staking arrangements, wrapped tokens, and stablecoins are given in the updated ASIC Information Sheet 225. Businesses need to consider the rights that accompany each product rather than just the nature of the product.

This September 30 deadline relates to the existing obligations under AFS laws. This is not related to the Corporations Amendment (Digital Assets Framework) Act 2026, which was passed by Parliament on April 1. It was granted Royal Assent on April 8 and will be operational from April 9, 2027, as per ASIC's timeline of implementation. Businesses that are taking advantage of the relief should know by September 30 whether they need an AFS, market, or clearing and settlement license.

Businesses that have doubts regarding their standing could require legal counsel with respect to the nature of their business products, custody services and client agreements. The submission of an application cannot be taken as a sure path to approval, as applicants have to meet ASIC's requirements. Companies failing to comply with the criteria for getting relief have to discontinue their services as from October 1. Operating while the application is under preparation does not automatically shield firms that miss the deadlines. 

According to ASIC, over 45 companies have already joined the licensing procedure. ASIC did not disclose which firms have filed such applications or how many exchanges, custodians, tokenisation providers, and other types of services there are among them.