Australia to fine unlicensed crypto firms up to 10% turnover

The Australian Securities and Investments Commission warned crypto firms they must apply for an Australian Financial Services licence by Sept. 30 or face fines up to 10% of annual turnover and potential civil or criminal penalties. From Oct. 1, businesses that require authorisation but have not met ASIC’s temporary no-action conditions could be operating in breach of financial services law and exposed to enforcement action.

Businesses that need an Australian Financial Services licence must submit an application or seek changes to an existing licence before the deadline. Firms requiring market or clearing and settlement licences must notify ASIC and hold a pre-application meeting with the regulator.

ASIC has been phasing out temporary enforcement relief for digital asset businesses. After updating guidance in October 2025, the regulator recorded more than 45 digital asset-related licence applications. On June 25, ASIC extended a previous relief period from June 30 to Sept. 30 and broadened the relief to cover crypto firms operating as authorised representatives of licensed entities or through certain intermediary arrangements; at that time the regulator had received about 30 applications.

Firms that have continued to operate under temporary arrangements and that require an Australian Financial Services licence but fail to apply or obtain the necessary authorisations face monetary penalties, civil enforcement and, in some cases, criminal sanctions under existing financial services laws.

The transition relief is separate from Australia’s Digital Asset Framework, which is scheduled to take effect on April 9, 2027. Until that framework begins, firms relying on ASIC’s no-action position must either secure the appropriate licences, amend existing licences, or notify and consult with the regulator before the Sept. 30 deadline to avoid operating without required authorisation.