September 30 is the final day of the Australian Securities and Investments Commissions sector-wide no-action position for qualifying digital-asset businesses transitioning into the existing financial-services licensing framework.
ASICs latest “final call” says businesses relying on the position must have taken the required licensing steps by September 30 or risk operating in breach of financial-services law from:
October 1, 2026
What the no-action position did
ASICs no-action position did not rewrite Australian law.
Instead, it provided enforcement discretion for certain digital-asset businesses while they assessed whether they:
- needed an Australian Financial Services licence;
- needed to vary an existing AFS licence;
- needed an Australian Market Licence;
- needed a Clearing and Settlement facility licence;
- could operate through authorised-representative or intermediary arrangements.
The transition followed ASICs updated Information Sheet 225 on digital assets.
Why October 1 matters
ASIC says firms that actually need a licence or variation but have not met the no-action conditions can risk operating unlawfully from October 1.
Potential consequences can include:
- civil penalties;
- criminal penalties;
- injunctions;
- licensing/enforcement action.
ASICs latest reminder says applicable financial penalties can reach:
up to 10% of annual turnover
depending on the contravention.
That is a maximum legal exposure, not an automatic penalty for every firm.
More than 45 applications
ASICs latest reminder says it has recorded:
more than 45 licence applications
from businesses seeking relevant digital-asset authorisations since INFO 225 was updated in October 2025.
An earlier update had cited roughly 30 applications, so the newer figure shows significant late-stage activity ahead of the deadline.
Which firms may be affected？
The key question is not whether a company calls itself “crypto.”
The question is whether its activities constitute a regulated financial product or financial service under technology-neutral Australian law.
Potentially affected structures can include:
- certain digital-asset investment products;
- yield/managed products;
- custody or platform structures tied to financial products;
- derivatives;
- market operation;
- clearing/settlement services.
Not every token or self-custody wallet business automatically needs an AFS licence.
AFS licence versus other licences
A business may need different regulatory permissions depending on activity.
Australian Financial Services licence
For in-scope financial products/services.
Australian Market Licence
For operating a financial market where required.
Clearing and Settlement facility licence
For operating relevant settlement/clearing infrastructure.
ASIC says firms needing market or CS licences were also expected to:
- notify ASIC in writing;
- hold a pre-application meeting;
by the September 30 deadline to fit within the no-action transition.
Authorised representatives and intermediary arrangements
ASIC expanded its no-action approach to cover some businesses:
- operating under or entering authorised-representative arrangements with an AFS licensee;
- using intermediary authorisation arrangements.
This matters because not every transition requires a standalone full licence.
But the legal structure must actually satisfy the relevant conditions.
Why INFO 225 matters
ASIC updated INFO 225 in October 2025 to explain how existing Australian financial-product definitions apply to digital assets.
The regulators position is that the definitions are:
- broad;
- technology-neutral.
That means simply issuing a token on a blockchain does not remove the need to analyse whether the economic/legal product is already regulated.
High Court support
ASIC says its broad technology-neutral interpretation of the financial-product definitions has been confirmed in recent High Court litigation.
This strengthens the regulators argument that some digital-asset firms were already within existing law before future Digital Asset Framework legislation is fully implemented.
Digital Asset Framework reforms are separate
Australia is also developing broader Digital Asset Framework reforms.
Those future reforms do not eliminate obligations that exist under current financial-services law.
A business can therefore face:
- current INFO 225 / AFS analysis;
- future DAF-specific rules;
at different stages.
What September 30 does not mean
The deadline does not mean:
- every Australian crypto company needs an AFS licence;
- every unlicensed token platform becomes illegal October 1;
- ASIC created a new blanket crypto licence overnight.
Only firms whose activities fall within existing licensing requirements—and that were relying on the no-action position—face the transition issue described here.
Risks for exchanges and platforms
For in-scope businesses, failure to complete transition steps can create:
- enforcement;
- product restrictions;
- client-offboarding;
- Australian service withdrawal;
- forced business-model restructuring.
For users, regulatory transition can indirectly cause:
- product closures;
- account migrations;
- delayed launches;
- reduced local product availability.
Evidence Status
Confirmed / Official ASIC
- Sector-wide digital-asset no-action position ends Sep. 30.
- From Oct. 1, firms needing licences/variations but not satisfying transition conditions risk breaching financial-services law.
- Civil/criminal penalties can apply.
- Applicable fines can reach up to 10% of annual turnover.
- More than 45 digital-asset-related licence applications recorded since Oct. 2025.
- Market/CS-licence applicants also had Sep. 30 transition requirements.
- Authorised-representative/intermediary structures can fall within the expanded no-action scope.
Developing
- Which firms cease/change Australian services.
- Enforcement after Oct. 1.
- Processing outcomes for pending applications.
- Interaction with future Digital Asset Framework reforms.
Risk Assessment
High regulatory transition / business-continuity risk.
The direct risk is concentrated among firms already within existing financial-services licensing rules, but non-compliance can lead to meaningful enforcement and product-access consequences.
What to Watch Next
October 1 enforcement posture, licence applications/approvals, exchange product changes, ASIC notices and implementation of the broader Digital Asset Framework.
FAQ
What ends on September 30？
ASICs sector-wide no-action position for qualifying in-scope digital-asset businesses.
Does every crypto company need an AFS licence？
No. It depends on whether the activities involve regulated financial products/services.
What happens from October 1？
Firms that require a licence/variation and did not satisfy transition conditions can face enforcement exposure.
Can penalties really reach 10% of turnover？
ASICs latest reminder says applicable fines can reach that level; it is not an automatic penalty for every breach.
How many applications has ASIC received？
Its latest reminder says more than 45 relevant digital-asset licence applications since October 2025.
Is this the same as Australias future Digital Asset Framework？
No. Existing financial-services law and future DAF reforms are related but separate.