TLDR
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ASIC gives Australian crypto firms until Sept. 30 to seek licences.
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Relief now covers authorised representative and intermediary structures.
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Around 30 digital asset firms have applied since INFO 225 updates.
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Block Earner ruling strengthened ASIC’s financial product position.
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New digital asset licensing rules will start on April 9, 2027.
ASIC has extended temporary enforcement relief for Australian digital asset businesses seeking required financial services licences. The new deadline gives eligible firms until September 30, 2026, instead of June 30. The regulator also widened the relief to cover more operating and intermediary arrangements.
ASIC Extends Licensing Relief for Crypto Businesses
ASIC said the extension applies to firms applying for an Australian Financial Services licence. It also covers businesses seeking Australian Market Licences or clearing and settlement facility licences. These firms must notify the regulator and attend a pre-application meeting before receiving protection.
The relief allows eligible businesses to continue operating while they prepare applications or licence variations. Firms must meet all conditions in ASIC’s updated class no-action letter. The temporary position does not remove legal duties or weaken existing consumer protection rules.
ASIC also expanded the arrangement to businesses using authorised representative agreements with licensed companies. It included firms operating through intermediary authorisation arrangements with Australian Financial Services licence holders. Therefore, more digital asset providers can use the transition period while arranging compliant business structures.
Updated Guidance Drives Licence Applications
ASIC introduced the original no-action position after revising Information Sheet 225 in October 2025. The guidance explains how Australia’s current financial services laws apply to digital assets. It also states that many crypto products qualify as financial products under existing legislation.
Since the update, ASIC has received about 30 licence applications from digital asset businesses. The regulator views Australia’s financial product definitions as broad and independent of specific technologies. Consequently, crypto services can require licences when they provide regulated financial products or related services.
The High Court’s Block Earner decision recently supported the regulator’s interpretation of existing law. The court found that Block Earner’s former crypto yield product qualified as a financial product. That ruling strengthened ASIC’s position that some digital asset services already fall under the Corporations Act.
New Digital Asset Framework Starts in 2027
The temporary relief remains separate from Australia’s new Digital Asset Framework. Parliament passed the legislation in April, and the framework will start on April 9, 2027. It will place digital asset platforms and tokenised custody platforms within the financial services licensing system.
ASIC has warned that current applicants may need further permissions after the framework begins. Some firms could require digital asset platform and tokenised custody platform authorisations. Therefore, businesses securing licences under Information Sheet 225 may still face additional regulatory steps.
The September extension gives firms more time to prepare complete applications and adjust operating arrangements. ASIC will continue focusing on market integrity and consumer protection during the transition. The regulator expects affected businesses to use the extra period to progress toward full licensing compliance.
