AFS License:- In a major relief for crypto firms operating in Australia, the country’s top financial regulator, the Australian Securities and Investments Commission (ASIC), has announced a big update.
ASIC has extended its no-action position for digital asset businesses. The move gives crypto firms an additional three months to comply with licensing requirements, pushing the deadline to September 30, 2026.
An AFS licence is required for businesses that provide regulated financial services in Australia. ASIC updated its regulatory guidance in October 2025. Following that, crypto firms dealing with products that can be classified as financial products are need to obtain or vary an AFS licence to continue operating legally. These include firms operating in stablecoins, tokenized assets, investment products, custody services, and trading platforms.
What’s the new ASIC update on AFS License
Under the updated relief, digital asset firms providing financial services will have more time to apply for or vary an Australian Financial Services (AFS) licence.
As per the official press release, ASIC also expanded the scope of the no-action position. It now also covers businesses operating under, or entering into, authorised representative and intermediary authorisation arrangements with existing AFS licence holders.
The update matters as many crypto firms continue to vie for AFC license. In April, Coinbase secured its AFSC license in Australia. The regualtory hustle comes after the regulator had in May urged digital asset businesses to act quickly on licensing requirements.
It has warned firms that they need an Australian Financial Services licence, or a variation to an existing licence. They must apply by 30 June 2026 before ASIC’s no-action position expires.
Businesses that miss the deadline and continue operating without the AFS license risk breaching financial services laws. While looming threat of ceasing operations, the firms could also face penalties that can include significant fines.
However, now with the revised deadline, crypto firms have got 3 months more. Interestingly, the extension also applies to firms seeking an Australian Market Licence or a Clearing and Settlement facility licence.
What it means for Crypto Firms in Australia?
The regulator first introduced the sector-wide no-action position alongside updates to Information Sheet 225 in October 2025. ASIC updated Information Sheet 225 (INFO 225) to clarify how existing financial services laws apply to digital assets and related products.
INFO 225, first introduced in 2017 and updated multiple times since, now serves as ASIC’s primary framework for determining when digital asset activities fall within Australia’s financial services regime.
ASIC said the guidance in Information Sheet 225 covers digital asset products that may be treated as financial products, including stablecoins, wrapped tokens, tokenised securities and digital asset wallets. It also said firms that require an Australian Market Licence or a Clearing and Settlement facility licence must notify ASIC in writing of their intention to apply and hold a pre-meeting by the same deadline.
The Australian regulator ASIC’s guidance update marked one of the country’s most significant regulatory moves for the crypto sector. Since then, the country is also working on building the national level crypto framework. In April, Australia passed its Digital Asset Framework (DAF) amid growing attention.
However, the clarity is still in process such as many firms still continue to deal with complex crypto tax in Australia.
Sneha Agrawal 
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