ASIC sets licensing deadline for crypto businesses in Australia

The Australian Securities and Investments Commission (ASIC) recalled on May 4, 2026 the license term for crypto businesses in Australia. Providers of financial products or services based on digital assets were required to submit an application for an Australian Financial Services license by June 30. The warning did not affect any token or software in the same way.

Who is eligible for a crypto business license in Australia?

The obligation depended on whether the asset or service was already a financial product under Australian law. A platform could require an AFS license, a variation of its existing authorization or another market or clearing license. Blockchain technology did not exclude that classification.

ASIC had updated its INFO 225 guide with examples on wallets, assets, returns and structures. The analysis was substantive: customer rights, common management, profit expectation and supplier functions. Calling a product a “utility token” did not resolve its legal nature.

The non-acting sectoral position offered a window to apply for leave. It was not a legal exemption nor did it protect fraud, deception or non-registration non-compliance. Firms had to act in good faith and submit files within the applicable deadline.

Two different regulatory calendars

The warning coexisted with the new framework for digital asset platforms and tokenized custody platforms. Its main entry was scheduled for April 2027. This future calendar did not allow waiting if the business already offered a financial product subject to existing regulations.

The same platform could be affected by both layers. For example, a future custody service could host holdings that were already financial products. The company needed to map each activity and determine which authorization applied now and which would be added later.

For users, registration also required precision. Just because a company had applied for a license did not mean that ASIC had granted it. Nor did an authorization for a product necessarily cover all tokens or services available in the application.

The extension approved in June

On 25 June 2026, ASIC extended its general no-action position until 30 September. The authority acknowledged that companies needed more time to study the updated guidance and prepare applications. The extension changed the operational date announced in May, not the underlying obligation.

The conditions of the updated letter required the company to submit the application or variation before the new deadline and meet the other requirements. Whoever was left out of the case could not assume that ASIC renounced acting. A public communication is never a substitute for reviewing the entire letter.

During the transition, firms needed to retain classification analysis and evidence of their application. If they added a new product, they had to check if it was still covered. Temporary tolerance did not freeze the business model or protect uncommunicated changes.

The extension did not by itself delay the platform regime of 2027. They were different processes: a temporary enforcement measure and a legislative reform with its own beginning. Mixing them could create a false sense of unlimited time.

Outlook from 2026

At the beginning of August 2026, the relevant date for companies covered by the sector position was September 30. Therefore, a faithful retrospective must count the May notice and update it with the June extension, without presenting the first due date as definitive.

The lesson for projects is to classify before commercializing and leave room for a regulatory file. For clients, it is advisable to check if there is a license granted, which entity owns it and what product it covers. “In process” and “authorized” are not equivalent.