ASIC Extends No-Action Period for Crypto Licensing in Australia
Vexoda Newsroom
Australia’s financial regulator has extended the no-action period for digital asset businesses until September 30th to facilitate smoother licensing transitions.
In a recent update, Australia's financial regulator, ASIC (Australian Securities and Investments Commission), has extended the temporary enforcement relief for digital asset businesses. This extension will last until September 30th, providing an additional three months for firms to apply for necessary licenses under updated regulatory guidance.
The no-action period initially set for June 30th was pushed back as part of ASIC's efforts to help businesses navigate Australia’s evolving crypto landscape. The temporary protection from enforcement now applies not only to those seeking Australian Financial Services (AFS) licenses but also to companies that might require market or clearing and settlement authorizations.
ASIC has clarified through its updated Information Sheet 225 (INFO 225) guidance that many digital asset products are considered financial products under existing laws, necessitating AFS licensing. This approach is based on ASIC’s view of Australia's broad definitions of financial products as technology-neutral and was recently reinforced by the High Court's Block Earner ruling.
Since updating its digital asset guidance in October 2025, ASIC has received approximately 30 license applications. The regulator also extended no-action relief to cover businesses operating through authorized representatives or intermediary arrangements with licensed firms, thus widening the pool of eligible companies for the transition period.
The extension is separate from Australia’s upcoming Digital Asset Framework (DAF), which will come into effect on April 9th, 2027. This new framework will bring digital asset platforms and tokenized custody platforms under Australia's financial services licensing regime. Some firms currently licensed based on INFO 225 may need additional authorizations once the DAF is in place.
Traders should be aware that this extension provides a grace period for compliance but does not eliminate the eventual requirement to obtain necessary licenses. The market reaction has been largely neutral, with no significant price movements observed among major cryptocurrencies like BTC and ETH during the announcement of the extension.
This development underscores Australia's ongoing efforts to regulate its burgeoning crypto sector while allowing businesses time to adapt. Traders should monitor how this extended period impacts licensing applications and whether it influences broader regulatory trends in other jurisdictions.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.