ASIC Warns Unlicensed Crypto Firms Face Fines Up to 10% of Annual Turnover

The Australian Securities and Investments Commission (ASIC) warned on Wednesday that crypto companies relying on temporary regulatory relief must apply for a financial services license by Sept. 30 or face penalties including fines up to 10% of annual turnover. The deadline applies to businesses requiring an Australian Financial Services license, market license, or clearing and settlement license under the regulator's no-action position. ASIC issued the warning as it prepares to end temporary enforcement relief, having recorded more than 45 digital asset-related license applications since updating its guidance in October 2025.

ASIC's Licensing Requirements and Deadline

ASIC stated that businesses requiring an Australian Financial Services license must apply for one or seek changes to an existing license before Sept. 30. Firms requiring market or clearing and settlement licenses must notify the regulator and hold a pre-application meeting before the deadline. Starting Oct. 1, companies that require authorization but have not met the conditions of ASIC's no-action position could be operating in breach of financial services law.

Penalty Framework for Non-Compliance

The regulator stated that companies operating without proper authorization after Oct. 1 may face civil and criminal penalties. Fines can reach up to 10% of a company's annual turnover for firms that fail to comply with licensing requirements. The warning raises the stakes for crypto businesses that have not entered the country's licensing process as the temporary enforcement relief period ends.

Application Progress and Extended Relief

ASIC recorded more than 45 digital asset-related license applications since it updated its guidance in October 2025. On June 25, ASIC extended the relief period from June 30 to Sept. 30 and expanded it to cover crypto businesses operating as authorized representatives of licensed firms or through certain intermediary arrangements. At the time of the June 25 extension, the regulator said it had received about 30 applications.

Separate Digital Asset Framework Timeline

The transition relief is separate from Australia's Digital Asset Framework, which takes effect on April 9, 2027. The framework represents a distinct regulatory structure from the current licensing requirements under ASIC's no-action position.

FAQ

What is the deadline for Australian crypto companies to apply for a financial services license?

Australian crypto companies relying on temporary regulatory relief must apply for a financial services license by Sept. 30. Starting Oct. 1, companies that require authorization but have not met the conditions of ASIC's no-action position could be operating in breach of financial services law.

What penalties do unlicensed crypto firms face in Australia?

Unlicensed crypto firms operating after Oct. 1 may face civil and criminal penalties, including fines reaching up to 10% of their annual turnover. ASIC stated that companies operating without proper authorization after the Sept. 30 deadline could be in breach of financial services law.