ASIC warns: Deadline looms for digital asset businesses to apply for a licence

Providers of financial services involving digital asset financial products should act quickly to determine whether they require an Australian Financial Services (AFS) licence, or a variation to an existing licence, and apply by 30 June 2026 before ASIC’s no-action position expires.

Firms that require a licence or a variation to their existing authorisations, but do not apply by that date, risk breaching financial services laws. Unlicensed conduct carries significant civil and criminal penalties, including fines of up to 10% of annual turnover.

Obligation to hold an AFS licence

A person carrying on a financial services business in Australia must generally hold an AFS licence or operate as an authorised representative.

ASIC has clarified that many digital asset products are already captured under existing law. Stablecoins, wrapped tokens, tokenised securities and certain digital asset wallets may constitute financial products, depending on their rights and features. Where this is the case, activities such as issuing, dealing, advising, operating platforms or providing custody will typically require appropriate licence authorisations.

No-action position ending

ASIC granted a sector-wide no-action position as part of its update to Information Sheet 225 Digital assets: Financial products and services (INFO 225), allowing firms time to assess the guidance and transition to licensing. Under this position, ASIC does not intend to take enforcement action for unlicensed conduct where an application for an AFS licence or variation is lodged by 30 June 2026.

Businesses that require an Australian market licence or clearing and settlement facility licence must, by that date, notify ASIC of their intention to apply and attend a pre-lodgement meeting.

Entities that do not take these steps will not be able to rely on the transitional relief after 30 June 2026.

Interaction with law reform

Updated INFO 225 sits alongside the Government’s broader digital assets framework. The Corporations Amendment (Digital Assets Framework) Act 2026 (Cth) commences on 9 April 2027 and introduces a new licensing regime for digital asset platforms and tokenised custody platforms.

Many businesses that obtain an AFS licence under the current framework are expected to require additional authorisations when the new regime commences.

Next steps

Businesses should now:

• determine whether any digital assets or related arrangements they offer are financial products;
• assess whether they are providing financial services, including issuing, dealing, advising, operating a platform or providing custody;
• identify whether an AFS licence is required or whether existing authorisations are sufficient; and
• lodge any required AFS licence application or variation by 30 June 2026.

If a business does not intend to seek a licence, it must ensure that any regulated activities cease before 30 June 2026 or are conducted under an appropriate alternative structure.

If you require assistance in assessing your licensing obligations or preparing an application, please contact Chris Mee at cmee@cnmlegal.com.au or Alanah McAliece at amcaliece@cnmlegal.com.au, or call 07 3211 4010.

This article is produced as general information in summary for clients and should not be relied upon as a substitute for detailed legal advice or as a basis for formulating business or other decisions. CNM Legal asserts copyright over the contents of this article.