Digital asset firms providing financial services have an additional three months to apply for or vary an Australian Financial Services (AFS) licence, following ASIC’s extension of its sector‑wide no‑action position to 30 September 2026.
ASIC is also expanding the scope of its no-action position to include digital asset businesses:
- operating under, or entering into, authorised representative arrangements with an AFS licence holder, and
- operating under, or entering into, intermediary authorisation arrangements with an AFS licence holder.
ASIC’s decision reflects a pragmatic response to industry transition challenges. The extension and broader scope support an orderly path to licensing, while maintaining a focus on investor protection and market integrity.
The 30 September 2026 deadline extension also applies to firms needing an Australian Market Licence or Clearing and Settlement (CS) facility licence, which includes requirements to notify ASIC in writing of their intention to apply and holding a pre‑meeting with ASIC.
ASIC has received approximately 30 licence applications from digital asset businesses since October 2025, following updates to Information Sheet 225 Digital assets: Financial products and services (INFO 225).
ASIC’s updated class no-action letter for digital asset businesses outlines the full scope and conditions of its extended no-action position.
Digital asset businesses transitioning to the new licensing regime can contact ASIC at fintech@asic.gov.au.
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Background
ASIC updated INFO 225 in October 2025 to clarify how existing laws apply to digital assets and related products, strengthening investor protections and providing firms with greater certainty to operate and innovate.
ASIC’s position that the financial product definitions in the current law are broad and technology neutral was recently confirmed in the High Court (26-124MR).
ASIC recognised that firms would need time to consider the updated guidance and transition to licensing, and implemented a sector‑wide no‑action position, initially until 30 June 2026, with the release of Consultation paper 381 Updates to INFO 225: Digital assets: Financial products and services (CP 381).
Updated INFO 225 is aligned to and supports the Government’s broader work on the Digital Asset Framework (DAF) reforms, see ASIC’s 18-month roadmap for the implementation of digital assets law reform. INFO 225 complements the reforms by clarifying what is a financial product and service under the current law.
ASIC is Australia’s corporate, markets and financial services regulator.