REGULATION | Australia Offers 3-Month Transitional Extension for its Most Comprehensive Crypto Regulatory Frameworks

Australia’s corporate regulator has extended temporary enforcement relief for cryptocurrency businesses by three months giving digital asset firms until September 30 2026 to comply with new licensing requirements as the country prepares to implement one of its most comprehensive crypto regulatory frameworks.

The Australian Securities and Investments Commission (ASIC) said the extension applies to digital asset businesses that may require an Australian Financial Services (AFS) licence as well as firms seeking market or clearing and settlement licences. The regulator also broadened the relief to include businesses operating through authorised representatives or intermediary arrangements with existing licence holders.

ASIC introduced the temporary ‘no-action’ position after updating its Information Sheet 225 (INFO 225) in late 2025 clarifying that many digital asset products fall within Australia’s existing financial services laws and therefore require licensing.

The regulator said it has received about 30 license applications from digital asset businesses since the updated guidance took effect but acknowledged the industry needed additional time to complete the transition.

The extension comes as Australia accelerates efforts to bring crypto businesses under mainstream financial regulation following Parliament’s approval of the country’s Digital Asset Framework in early 2026. The framework, scheduled to take effect in April 2027, will establish a dedicated licensing regime for digital asset platforms and tokenised custody providers.

ASIC has cautioned that firms obtaining licences under the current framework may still need to secure additional authorisations once the Digital Asset Framework becomes operational underscoring that the current relief is intended as a transitional measure rather than a relaxation of oversight.

“Many digital asset firms that apply for a licence based on INFO 225 will also need to add DAP and TCP authorisations to their licence once that regime commences,” said ASIC.

Australia has steadily adopted a more assertive approach to crypto regulation balancing stricter licensing requirements with targeted regulatory relief. In recent months, ASIC has intensified enforcement against firms operating without appropriate licences while providing transitional arrangements designed to prevent disruption for compliant businesses.

The regulator has maintained that digital asset activities should generally be regulated under existing financial services laws until the new framework is fully implemented.

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