Australia: Crypto firms must act by Sept. 30 or face enforcement

Australian crypto and digital-asset firms that require financial‑services authorisation have until Sept. 30 to choose a compliance route or start winding down while the regulator’s temporary no‑action relief remains in place.

By the deadline, qualifying businesses must apply for or vary an Australian Financial Services Licence, operate under specified authorised‑representative or related‑company arrangements, or notify the Australian Securities and Investments Commission of an intended market‑licence application and attend a pre‑application meeting.

From Oct. 1, firms that should be authorised but have not met those conditions will no longer benefit from the no‑action position and may face enforcement action.

The regulator warned that breaches of financial‑services law can carry civil and criminal penalties, including fines of up to 10% of annual turnover.

Whether a firm falls inside the licensing regime depends on whether the digital asset or the arrangement it offers qualifies as a financial product. The regulator assesses each offering by examining the rights, benefits, expectations and product features attached to it.

Market operators and clearing and settlement providers follow a different timetable. They must notify the regulator in writing of an intention to apply and attend a pre‑application meeting by Sept. 30, with a formal application due within 12 months.

Companies that do not intend to seek authorisation can notify ASIC that they will wind down covered activities and must stop those activities within the permitted transition period.

The no‑action relief excludes crypto lending and “earn” style offerings, most digital‑asset derivatives and certain non‑cash payment facilities; those products were not covered by the temporary position.

The regulator’s letter does not declare covered activity lawful or prevent courts or third parties from taking action. It records when the regulator presently intends not to pursue enforcement.

ASIC extended an earlier June 30 deadline by three months and broadened the available compliance routes. Since guidance was updated in October 2025, ASIC has recorded more than 45 applications for digital‑asset financial‑services authorisations.