On September 2, 2026, ASIC issued a final call to digital asset businesses relying on its sector-wide no-action position. Firms providing regulated financial services must take qualifying action by September 30, 2026. From October 1, firms without the required authorization risk breaching financial services law and could face civil and criminal penalties, including fines of up to 10% of annual turnover. Businesses assessing whether they need an AFSL in Australia have less than four weeks to act.
What Counts as Acting Before September 30
ASIC updated its no-action letter on June 25, 2026. The letter provides three main routes for firms seeking to continue regulated digital asset activities.
A firm can lodge an application for an AFS license or apply to vary an existing license. It can also become an authorised representative of an AFS licensee under section 916A of the Corporations Act 2001. The remaining route covers intermediary authorisations and specified related-body-corporate arrangements. The relevant applications, agreements and ASIC notifications must be completed by September 30.
The letter divides these routes into five technical scenarios. The applicable scenario depends on which entity provides the service and whether the activity involves issuing, varying or disposing of a financial product.
Australian Market License and Clearing and Settlement facility license applications follow different timelines. Firms must notify ASIC in writing of their intention to apply and attend a pre-application meeting by September 30. The full application must then be lodged within 12 months of the notification.
Who the No-Action Position Covers
The transitional position covers businesses that first provided the relevant service or operated the relevant market or clearing facility in Australia on or before December 31, 2025.
The relief excludes crypto lending and earn products, most digital asset-based non-cash payment facilities other than stablecoins, and digital asset derivatives other than wrapped tokens.
A direct AFSL applicant serving retail clients must join AFCA before lodging its application. Under specified related-body-corporate structures, the related company submitting the application must hold the AFCA membership.
Foreign companies must register in Australia as registered foreign companies and appoint local agents by the deadline that applies to their chosen arrangement.
New market entrants are outside the transitional position. They must obtain the required AFSL authorization before providing an in-scope service or operate as an authorised representative of an appropriately licensed firm. The AFSL or VASP registration guide explains the licensing and AML registration requirements.
What Happens After October 1
Section 911A(1) of the Corporations Act prohibits a person from carrying on a financial services business without an AFS license unless an exemption applies. From October 1, a business that requires an AFSL and has neither authorization nor qualifying no-action cover risks breaching this provision.
ASIC states that civil and criminal penalties apply. Potential fines can reach 10% of annual turnover.
Digital asset firms must also assess their AML/CTF registration and compliance obligations with AUSTRAC. These requirements operate independently from the ASIC licensing process, as explained in the AUSTRAC registration requirements guide.
Context and What Comes Next
ASIC began consulting on transitional arrangements through Consultation Paper 381 in December 2024. It updated INFO 225 and issued its original no-action letter on October 29, 2025, setting an initial deadline of June 30, 2026. On June 25, 2026, ASIC moved the deadline to September 30 and expanded the relief to cover authorised representative and intermediary authorisation arrangements.
ASIC had received approximately 30 applications from digital asset businesses by late June. Its September 2 release reported more than 45 applications since October 2025. The number increased by about 50% in just over two months.
The Corporations Amendment (Digital Assets Framework) Act 2026 passed Parliament on April 1, 2026, received Royal Assent on April 8, 2026, and commences on April 9, 2027. ASIC states that many existing authorizations will remain necessary under the new framework. Firms securing an AFSL under the current rules will therefore continue to use that authorization after the 2027 transition.
The UK’s five-month FCA cryptoasset authorisation gateway also opens on September 30, the date Australia’s transitional window closes.
Equilex supports digital asset businesses with AFS license applications, authorised representative arrangements and AUSTRAC registration. Book a call to discuss the September 30 deadline with a regulatory specialist.
