ASIC grants crypto firms three-month licensing reprieve

The extension replaces the previous June 30 cutoff and applies to companies seeking an Australian Financial Services licence, including those requiring market or clearing and settlement authorizations. ASIC has further expanded this relief to cover digital asset firms operating through authorized representatives or intermediary arrangements, a segment previously excluded from the broad no-action position.

Since updating its guidance in October 2025, the regulator has processed roughly 30 licence applications. This pivot aligns with the High Court’s recent 7-0 ruling against Block Earner, which confirmed that fixed-yield crypto products function as financial investments under existing legislation. While this interim relief offers breathing room, it remains distinct from the formal Digital Asset Framework set to commence on April 9, 2027. ASIC cautioned that firms currently securing licences under Information Sheet 225 may still face additional compliance hurdles, including new authorizations for digital asset and tokenized custody platforms, as the government moves toward a comprehensive overhaul of the industry’s legal status.