Australia warns unlicensed crypto firms of fines up to 10% of annual turnover
Australian cryptocurrency companies benefiting from temporary regulatory relief must apply for a financial services license by September 30 to avoid substantial penalties. The Australian Securities and Investments Commission (ASIC) warned that operating without the required license after this date could result in fines amounting to up to 10% of annual turnover and potential criminal charges. This move ramps up pressure on crypto businesses to complete their licensing processes amid Australia’s evolving regulatory environment.
Deadline for License Applications
The Australian Securities and Investments Commission (ASIC) has announced that crypto companies requiring an Australian Financial Services license must submit their applications or amend existing licenses by September 30. Firms that need market or clearing and settlement licenses must also notify ASIC and hold a pre-application meeting.
Starting from October 1, businesses operating without meeting the conditions of ASIC’s temporary no-action position risk breaching financial services laws.
Since ASIC updated its guidance in October 2025, it has received over 45 applications related to digital assets.
Extension and Conclusion of Temporary Relief
On June 25, ASIC extended the temporary regulatory relief from June 30 to September 30 and expanded it to cover crypto businesses acting as authorized representatives of licensed entities or operating via certain intermediary arrangements.
However, the transition period ends on September 30, after which companies operating without proper authorization may face civil and criminal penalties.
Distinction from Australia’s Digital Asset Framework
This transition relief period is separate from the Digital Asset Framework, a comprehensive regulatory regime for digital assets that will take effect on April 9, 2027.
The Digital Asset Framework aims to establish a more formalized structure for regulating digital assets within Australia.
Why it matters
This development substantially increases pressure on cryptocurrency companies operating in Australia without official licensing, compelling them to expedite their licensing procedures or face hefty fines and criminal prosecution. The regulator is tightening oversight following a temporary relief period to safeguard the market and investors amid the growing adoption of digital assets. Although the new Digital Asset Framework will not come into force until 2027, ASIC is proactively establishing conditions for sustainable and transparent crypto regulation, aiming to curb unauthorized activities and facilitate the integration of the sector into the country’s financial system.
Prepared from the source material with AI-assisted editing and checked against the supplied facts.
Open original source ↗