The Australian Securities and Investments Commission (ASIC) is urging providers of digital asset financial products to determine if they require an Australian Financial Services (AFS) license before its no-action position expires on 30 June 2026.

Firms that need a new license or a variation to their existing authorisations risk breaching financial services laws if they miss the deadline.

Unlicensed conduct carries severe civil and criminal penalties, including fines of up to 10% of an entity’s annual turnover.

To clarify regulatory requirements, ASIC released updated guidance (25-250MR) last year, classifying stablecoins, wrapped tokens, tokenised securities, and digital asset wallets as financial products.

This guidance was part of an update to Information Sheet 225, which included a sector-wide no-action letter giving providers time to assess their obligations and apply for a digital asset license in Australia.

Businesses requiring an Australian Market Licence or a Clearing and Settlement (CS) facility license face the same 30 June 2026 deadline.

These firms must formally notify ASIC in writing of their intention to apply and hold a pre-meeting with the regulator.

The updated Information Sheet 225 aligns with the government’s broader work on new laws that will bring digital asset platforms (DAPs) and tokenised custody platforms (TCPs) under the financial services licensing regime from April 2027.

ASIC has also released an implementation roadmap for these reforms, which will introduce new regulatory guidance and operational standards for the sector.

Featured image credit: Edited by Fintech News Australia, based on image by aacoustic89 via Magnific