Digital Asset Firms Get More Time to Meet Licensing Rules

The extension follows ASIC’s October 2025 update to Information Sheet 225, which clarified how the current financial product definitions can apply to digital assets. Since then, the regulator says it has received about 30 licence applications from digital asset businesses. By granting more time, ASIC is acknowledging the practical work required to prepare applications, adjust compliance systems and decide whether a business needs to apply for a new licence or vary an existing one.

Importantly, the relief has also been broadened. It now covers digital asset businesses operating under, or entering into, authorised representative arrangements with an Australian financial services licence holder, as well as businesses using intermediary authorisation arrangements. The extension also applies to firms that may need an Australian Market Licence or clearing and settlement facility licence, provided they meet the relevant notification and pre-meeting requirements.

For consumers and investors, the message is more nuanced than simply giving crypto firms extra time. A no-action position is not the same as a licence, an endorsement or a guarantee that a product is suitable. It is a temporary regulatory stance designed to support an orderly transition. Investors should still check whether a provider is licensed, understand how assets are held, review withdrawal rights, and be cautious about fixed-yield or complex digital asset products that resemble managed investment schemes.

The timing also matters because the High Court recently confirmed, in ASIC’s Block Earner appeal, that a fixed-yield digital asset product can fall within Australia’s financial product laws. That decision strengthens ASIC’s position that the law is technology-neutral and that digital labels do not remove consumer protection obligations.

• Digital asset firms now have until 30 September 2026 to apply for or vary relevant licences under ASIC’s no-action position.
• The expanded relief may help businesses transition through authorised representative or intermediary arrangements.
• Investors should not treat regulatory transition as a substitute for due diligence or licensed advisers.

This is an extension to the earlier 30 June deadline story, rather than a retreat from regulation. ASIC’s direction remains clear: digital asset innovation can continue, but platforms offering financial products must move into the licensed financial services system. For Australians using digital platforms, staying informed remains essential as the rules, risks and protections continue to evolve.