Australia’s financial regulator has given digital asset firms extra time to secure necessary licenses. The Australian Securities and Investments Commission, or ASIC, extended its no-action position for crypto companies until September 30, 2026.
This extension, announced recently, gives firms three more months beyond the original June 30 deadline. It covers businesses offering financial services involving digital assets that might fall under existing financial product laws. The move aims to help companies transition more smoothly into the regulated framework.
What the Extension Means for Firms
Under the extended deadline, crypto firms have more time to apply for or modify an Australian Financial Services (AFS) licence. ASIC also broadened the relief to include businesses using authorized representative or intermediary arrangements with an AFS licence holder. The regulator described the decision as “a pragmatic response to industry transition challenges.”
Firms seeking an Australian Market Licence or a Clearing and Settlement facility licence also face the September 30 deadline. They must notify ASIC in writing of their intention to apply and hold a pre-meeting with the regulator. However, the no-action position does not change Australian law or create a permanent exemption from licensing. It simply outlines when ASIC won’t take enforcement action against eligible firms that meet its transition conditions.
INFO 225 and Broader Reforms
Since updating Information Sheet 225, or INFO 225, in October 2025, ASIC has received around 30 licence applications from digital asset firms. INFO 225 explains how existing financial services laws apply to digital assets and related products. It provides clearer guidance on when licensing obligations kick in.
ASIC noted that financial product definitions under current law are broad and technology-neutral, a position Australia’s High Court has affirmed. The guidance followed Consultation Paper 381, which proposed updates to INFO 225, and the initial no-action position that was set to expire June 30, 2026. ASIC stated the extension and broader scope “support an orderly path to licensing, while maintaining a focus on investor protection and market integrity.”
Limitations and Exclusions
The relief is limited. It excludes crypto lending and earn products, most digital asset payment facilities outside eligible stablecoins, and derivatives beyond wrapped tokens. ASIC said it will continue to act against serious misconduct that causes significant consumer harm or systemic issues. The guidance aligns with Australia’s broader Digital Asset Framework reforms, with INFO 225 designed to help firms understand their obligations under existing law as they prepare for licensing and operational requirements.
