Australia warns unlicensed crypto firms of 10% turnover fines

Australia warns unlicensed crypto firms that they have until Sept. 30, 2026, to apply for a financial services license or risk fines of up to 10% of annual turnover. The Australian Securities and Investments Commission said companies that miss the deadline could be in breach of financial services law from Oct. 1.

Key Takeaways

• ASIC's temporary no-action relief for digital asset businesses expires on Sept. 30, 2026.
• Firms that need an Australian Financial Services license must apply, or seek changes to an existing license, before that date.
• From Oct. 1, non-compliant companies could face civil and criminal penalties, including fines of up to 10% of annual turnover.
• ASIC has recorded more than 45 digital asset-related license applications since updating its guidance in October 2025.
• The transition relief is separate from Australia's Digital Asset Framework, which takes effect on April 9, 2027.

The warning, issued on Wednesday, raises the stakes for crypto businesses that have not entered Australia's licensing process. It comes as the regulator prepares to end the temporary enforcement relief many digital asset firms have used while they seek authorization.

The countdown is now measured in weeks, a development that sits alongside other fintech and crypto alerts as ASIC makes the cost of staying unlicensed explicit.

What happens if crypto firms miss the Sept. 30 license deadline?

Australian crypto companies still relying on temporary regulatory relief have until Sept. 30 to apply for a financial services license. Miss that cutoff, and they risk penalties that include fines reaching 10% of annual turnover.

On Wednesday, ASIC said businesses that require an Australian Financial Services license must apply for one, or seek changes to an existing license, before the deadline.

Firms that require market licenses or clearing and settlement licenses must notify the regulator and hold a pre-application meeting.

Starting Oct. 1, companies that require authorization but have not met the conditions of ASIC's no-action position could be operating in breach of financial services law. Cointelegraph reported that the regulator said they may face civil and criminal penalties.

How many digital asset license applications has ASIC received?

ASIC said it has recorded more than 45 digital asset-related license applications since it updated its guidance in October 2025.

On June 25, ASIC extended the relief period from June 30 to Sept. 30. It also expanded the relief to cover crypto businesses operating as authorized representatives of licensed firms, or through certain intermediary arrangements.

At the time of that extension, the regulator said it had received about 30 applications. The latest figure of more than 45 shows additional filings since June.

Is this the same as Australia's Digital Asset Framework?

No. ASIC's transition relief is separate from Australia's Digital Asset Framework, which takes effect on April 9, 2027. Missing the Sept. 30 deadline is a nearer-term legal risk, not extra time until 2027.

Crypto companies that need an Australian Financial Services license cannot treat the 2027 start date as extra runway. The no-action position ends on Sept. 30. From Oct. 1, firms that have not met ASIC's conditions and still require authorization could be in breach.

That split timeline also covers operators brought into the extended relief in June, including authorized representatives of licensed firms and businesses using certain intermediary arrangements.

Why does the ASIC warning matter now?

The message is aimed at crypto businesses that have not entered the country's licensing process. Temporary enforcement relief is about to lapse.

A fine of up to 10% of annual turnover would be a large hit for any digital asset business with significant revenue. Civil and criminal penalties sit on top of that financial risk, as Wednesday's warning underlined with the Sept. 30 expiration approaching.