Australia’s corporate regulator has given crypto firms a short but crucial breathing space: ASIC has extended temporary licensing relief until Sept. 30, replacing the previous June 30 deadline. The move gives businesses an extra three months to prepare and submit licence applications under Australia’s updated digital asset rules.
What the extension covers
- The reprieve applies to entities seeking an Australian Financial Services (AFS) licence and to firms that may require market or clearing and settlement licences.
- ASIC broadened the relief to explicitly include digital-asset businesses operating via authorized representatives or through intermediary arrangements with licensed entities.
- The extension is framed as a transitional measure while outstanding licence applications are assessed.
Regulatory background
- ASIC updated its digital-asset guidance in October 2025, clarifying that many crypto products qualify as financial products under Australia’s technology‑neutral financial services laws. That guidance was accompanied by a no‑action position set out in Information Sheet 225 (INFO 225), which let eligible businesses continue operating while preparing applications.
- Since the October guidance, ASIC says it has received roughly 30 licence applications.
Why this matters now
- The extension follows a major legal win for ASIC: Australia’s High Court last week ruled unanimously in ASIC’s favor in its long-running case against Block Earner (Web3 Ventures Pty Ltd). The court found the firm’s former fixed-yield crypto product functioned as both a financial investment facility and a derivative under the Corporations Act, because investor returns depended on movements in underlying digital-asset prices and exchange rates. That ruling reinforces ASIC’s position that certain crypto offerings sit squarely within existing financial services laws. The penalty phase of the dispute is now headed back to the Full Federal Court on ASIC’s appeal.
- Separately, Parliament has passed a Digital Asset Framework (scheduled to take effect on April 9, 2027) that will formally bring digital-asset platforms and tokenized custody platforms into the licensing regime. ASIC warns firms that obtain licences under INFO 225 may still need to obtain additional Digital Asset Platform (DAP) and Tokenized Custody Platform (TCP) authorisations once the new framework commences.
Wider context: tax reform on the horizon
- The licensing changes come amid broader policy shifts. The government has proposed replacing the current 50% capital gains tax discount with an inflation‑indexed model from July 1, 2027, meaning taxable gains would be adjusted for inflation rather than automatically receiving the existing discount after a one‑year holding period. That could increase tax liabilities for many long-term crypto investors in strong market cycles.
What crypto firms should do now
- Use the extended window to finalise and lodge licence applications if you haven’t already.
- Review whether operations conducted through authorised representatives or intermediaries remain compliant under INFO 225 and whether DAP/TCP authorisations will be required when the new framework takes effect.
- Expect closer regulatory scrutiny going forward; align product structures and disclosures with ASIC’s interpretation that many crypto products are financial products.
Bottom line: ASIC’s three‑month extension eases immediate pressure, but it does not change the direction of travel. The legal landscape and upcoming Digital Asset Framework make clear that Australian regulators expect crypto businesses to migrate into the established financial services regime — and to prepare for further authorisation requirements and tax changes.
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