The Australian Securities and Investments Commission (ASIC) has urged businesses relying on its sector wide no action position for digital assets to apply for an Australian Financial Services (AFS) licence by September 30 or risk being penalized.

 

The sector wide no action position, which was introduced on October 29, 2025, when ASIC updated its INFO 225 guidance, provided greater clarity on why digital asset businesses operating in the country may need an AFS licence.

 

Recognizing that several crypto businesses still needed time to understand the new guidelines, ASIC extended the deadline for mandatory AFS licensing from June 30 to September 30.

 

Although the response from businesses regarding compliance appears to have been positive, with ASIC recording more than 45 applications, the regulator has issued a final reminder to businesses yet to comply with the directive.

 

According to the regulator, businesses that fail to obtain the required AFS authorization by the September deadline risk breaching the country’s financial laws and could face civil and criminal penalties that could potentially reach 10% of their annual company turnover.

 

ASIC’s reminder to comply with the new regulatory guidelines comes at a time when the Australian Transaction Reports and Analysis Centre (AUSTRAC), the country’s anti money laundering and counter terrorism financial intelligence unit, is stepping up enforcement against businesses providing regulated virtual asset services without being properly enrolled under Australia’s AML/CTF regime.

 

So far, about four crypto firms have been suspended, including Cryptolink, whose registration has been withdrawn, while about 96 of its crypto ATMs have been taken down across the country.