ASIC hits Pause: No-action relief for digital asset businesses extended to 30 September 2026

On 25 June 2026, the Australian Securities and Investments Commission (ASIC) issued an updated class no‑action letter extending both the scope and deadline of its transitional relief for certain digital asset businesses to 30 September 2026.

ASIC’s no‑action relief provides a transitional policy position not to take enforcement action against certain unlicensed digital asset businesses, provided they lodge an AFSL (or variation) application by 30 September 2026, enter into another recognised exemption, and comply with specified conditions under the relief instrument.

The relief, which also covers some market operators and clearing and settlement facilities, sits alongside broader regulatory change, including the forthcoming Corporations Amendment (Digital Assets Framework) Bill 2026 (Cth) (DAF Bill) regime from April 2027 and ASIC’s continued position, reflected in the updated Information Sheet 225 (INFO 225), that many digital asset arrangements already fall within the existing financial services framework and must be assessed on a case‑by‑case basis.

Who is included in the updated scope?

The no‑action position applies to persons providing financial services in relation to digital assets that constitute financial products, where those services would otherwise require licensing.

ASIC will not take action where entities are demonstrably transitioning toward licensing in a range of new circumstances (indicated in bold), including where entities:

• lodge an AFSL application (or variation) by 30 September 2026;

• are appointed as an authorised representative of a licensee and are authorised to provide the financial services on behalf of the licensee;

• provide financial services on behalf of a related body corporate, where:

  • the related body corporate has lodged an AFSL application (or variation);

  • the entity and its related body corporate have entered into an agreement that the related body corporate will, as soon as practicable after the AFSL or variation is granted, authorise the entity to provide financial services on its behalf; and

  • ASIC is notified of said agreement.

• enter into an intermediary authorisation for financial services relating to the issue, variation or disposal of a financial product, and ASIC is notified of said authorisation;

• provide financial services under a structured arrangement with a related body corporate involving the issue, variation or disposal of a financial product on its behalf, where:

  • the related body corporate, or its representatives may make offers to persons to arrange for the issue, variation or disposal of financial products by the entity;

  • the entity will issue, vary or dispose of financial products in accordance with those offers, where accepted;

  • the related body corporate has lodged an AFSL application (or variation);

  • the entity and its related body corporate have entered into an agreement that the related body corporate will, as soon as practicable after the AFSL or variation is granted, authorise the entity to provide financial services on its behalf; and

  • ASIC is notified of said agreement.

The no-action position applies to financial services that are provided on or after 29 October 2025 and continues until the earliest of:

• ASIC refuses to accept the AFSL application;

• the applicant withdraws their application;

• ASIC refuses the AFSL (or variation);

• ASIC grants the AFSL (or variation); or

• the entity entering into an authorised representative or intermediary authorisation (where relevant).

The relief is subject to several conditions, including:

• the business must have been operating in Australia on or before 31 December 2025;

• retail-facing providers (or the related body corporate where relevant) must be members of the Australian Financial Complaints Authority (AFCA);

• foreign companies must be registered and appoint a local agent no later than, where relevant:

  • the day the AFSL application is lodged;

  • the entity is appointed as an authorised representative;

  • enters into an agreement with a related body corporate; or

  • enters into an intermediary authorisation.

    
    

What does this mean for digital asset businesses?

The extension provides a further window for digital asset businesses that were previously working towards the 30 June deadline to finalise their licensing strategy. However, the expanded scope and extended timeframe also introduce additional structuring considerations, including ensuring that the appropriate entity is positioned to obtain licensing and rely on the relief.

The extension to the relief for 90 days to allow digital asset businesses to review their product offering and consider additional relief pathways is a sensible and pragmatic step. However, 90 days is a short time, and digital asset businesses seeking to rely on the relief will need to move quickly in order to finalise their licensing strategy before 30 September 2026.

Written by Steven Pettigrove and Tahlia Kelly