ASIC no-action deadline looms

ASIC issued a press release this week emphasising that digital asset businesses should move quickly to determine whether they are required to apply for an Australian financial services licence (AFSL), or a variation to an existing AFSL before ASIC’s no-action position expires on 30 June 2026.

ASIC’s no‑action relief is a transitional position under which ASIC has indicated it does not intend to take enforcement action in respect of certain unlicensed financial services involving digital assets, provided a business lodges an AFSL (or variation) application by 30 June 2026 and complies with specified conditions while the application is determined. The relief also extends to some market operators and clearing and settlement facilities.

This announcement follows a period of significant regulatory change across the digital asset sector. The latest announcement concerns digital assets business involving financial services regulated under the current law. However, digital asset businesses will also need to grapple with further reforms in the near future. In particular, the passage of the Corporations Amendment (Digital Assets Framework) Bill 2026 (Cth) (DAF Bill) which will introduce new licence authorisations for Digital Asset Platforms (DAPs) and Tokenised Custody Platforms (TCPs) from April 2027.

In parallel to the no-action relief, ASIC’s updated Information Sheet 225 (INFO 225) reinforces its long‑standing position that many digital asset arrangements involve regulated services under the existing law. As a result, businesses must carefully assess their activities on a token‑by‑token and service‑by‑service basis to determine whether they operate under the AFSL regime. This includes considering whether products such as stablecoins, wrapped tokens, tokenised securities and wallet services constitute financial products requiring appropriate authorisations.

What is required for proposed licensees before the deadline?

Providers of financial services involving digital asset financial products should act promptly to determine whether their activities fall within the AFSL regime and, where required, take steps to continue offering services in Australia beyond 30 June 2026. In practice, this includes:

• applying for an AFSL or a variation to existing AFSL authorisations; or

• for entities that require an Australian market licence or clearing and settlement (CS) facility licence:

  • notifying ASIC in writing of their intention to apply; and

  • holding a pre‑lodgement meeting with ASIC.

Firms that fail to take action before the deadline risk breaching financial services laws, exposing themselves to significant civil and criminal penalties, including substantial fines (which may reach up to 10% of annual turnover).

What questions should digital asset business be asking?

Businesses should now be actively assessing whether their current and proposed activities trigger AFSL requirements to continue operating in Australia. Key questions include:

• Have you assessed your product suite, including each token and service offering, to determine whether you are providing a financial service or operating a financial market?

• Can you rely on ASIC’s no‑action relief, or do you need to apply for a licence now?

• Have you identified and commenced the key steps required to apply for an AFSL or licence variation?

• Do you understand the core obligations applicable to AFS licensees, and how these may evolve under the emerging DAP and TCP regime?

If you require assistance understanding how these rules apply to your business, please reach out to the Piper Alderman Blockchain team. You can also access our licensing guide prepared in collaboration with the Digital Economy Council of Australia and Korda Mentha at this link.

Written by Steven Pettigrove and Tahlia Kelly