Australian cryptocurrency firms relying on temporary regulatory leniency must submit applications for financial services licenses by 30 September or face penalties, including fines of up to 10% of annual turnover. The Australian Securities and Investments Commission (ASIC) has warned that non-compliant companies could incur civil and criminal sanctions from 1 October as the regulator discontinues its temporary enforcement relief.
ASIC’s guidance, updated in October 2025, prompted over 45 digital asset-related license applications, with approximately 30 received before the relief period was extended to September 30. The regulator has not specified the exact number of firms affected by the deadline or detailed the intermediary arrangements covered by the relief extension.
The deadline follows a broader push to formalise oversight of the crypto sector ahead of Australia’s Digital Asset Framework, which will take effect on 9 April 2027. The framework’s full scope remains unexplained, but its implementation is expected to reshape licensing and compliance requirements for digital asset businesses.
ASIC’s enforcement actions underscore growing regulatory scrutiny of the sector, with firms now required to navigate a more structured licensing process. The potential penalties highlight the risks of delaying compliance, as the regulator tightens its approach to ensure adherence to financial services standards.
Written by Steven Cook
Regulation Desk
