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Australia’s financial markets regulator has issued a final reminder to digital asset businesses operating under transitional relief to secure the required licences or vary their existing authorisations before the arrangement expires on September 30, 2026.
The Australian Securities and Investments Commission (ASIC) said firms relying on its sector-wide no-action position for digital asset-related financial products and services must apply for, or seek variations to, an Australian Financial Services (AFS) licence by the deadline.
Businesses that require an Australian Market Licence or a Clearing and Settlement (CS) facility licence must also notify ASIC in writing of their intention to apply and hold a pre-application meeting with the regulator before September 30.
From October 1, firms that require a licence or variation but have not satisfied the conditions of ASIC’s no-action position could be considered to be operating in breach of financial services laws.
Such breaches could expose businesses to civil and criminal penalties, including potential fines of up to 10% of annual turnover.
More than 45 digital asset licence applications filed
ASIC said it has received more than 45 licence applications from businesses seeking the relevant authorisations to provide financial services connected with digital assets since its Information Sheet 225, Digital assets: Financial products and services (INFO 225), was updated in October 2025.
The regulator’s transitional arrangements are intended to provide businesses with time to assess how existing financial services laws apply to their operations and take the necessary steps towards compliance.
The end of the no-action relief represents a significant step in bringing Australia’s digital asset sector further into the regulated financial services framework.
ASIC said the transition is designed to support consumer protection and market integrity while giving businesses a clearer pathway towards operating within the country’s regulatory requirements.
ASIC clarifies digital asset regulatory obligations
ASIC introduced the sector-wide no-action position following consultation in December 2024 on the need for transitional arrangements that would give businesses time to consider updated regulatory guidance and prepare for licensing.
The arrangements were implemented through the release of an updated INFO 225 in December 2024.
In June 2026, ASIC clarified and expanded the scope and conditions of the no-action position and extended the transition deadline to September 30, 2026, citing challenges faced by industry participants in moving towards compliance.
The updated INFO 225 sets out ASIC’s interpretation of how existing laws apply to digital assets and related products and services.
The guidance applies broadly across the digital asset ecosystem, including:
- Existing financial services and financial markets businesses using blockchain technology in connection with financial products and real-world assets, including tokenisation.
- Digital asset-focused businesses.
- Brokers and other intermediaries.
- Professional advisers providing services to businesses operating in the sector.
The approach reflects the regulator’s effort to ensure that digital asset activities are subject to appropriate financial services obligations where they fall within the existing regulatory framework.
New digital assets framework begins in 2027
The licensing transition is also taking place ahead of the implementation of Australia’s new digital assets regulatory regime.
The Corporations Amendment (Digital Assets Framework) Act 2026 (DAF Act) passed Parliament on April 1, 2026, received Royal Assent on April 8 and is scheduled to commence on April 9, 2027.
The legislation provides an 18-month implementation period from the date it passed Parliament, giving regulators and industry participants time to prepare for the new framework.
However, ASIC has made clear that the introduction of the new regime will not eliminate the need for many existing authorisations. Businesses currently required to hold relevant licences will therefore need to continue meeting applicable regulatory requirements after the framework takes effect.
ASIC sets roadmap for regulatory transition
ASIC outlined an implementation roadmap in April 2026 aimed at supporting businesses through the transition to the new digital asset regime.
The roadmap includes consultation on new regulatory standards and guidance, the development and release of regulatory guides, and continued engagement with industry stakeholders.
For digital asset businesses, the immediate priority remains meeting the September 30 licensing deadline.
Firms that fail to apply for the required authorisation, vary their existing licence where necessary, or satisfy the conditions of ASIC’s no-action position by the deadline could lose the protection provided by the transitional arrangement.
The regulatory shift signals Australia’s broader move towards integrating digital assets into its formal financial services and market oversight framework, with licensing, compliance and consumer protection becoming increasingly central to participation in the sector.
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