Australia’s securities regulator has extended temporary licensing relief for crypto firms until Sept. 30, giving businesses three more months to comply with updated digital asset rules.
Summary
- ASIC has extended temporary crypto licensing relief until Sept. 30, delaying enforcement by three months.
- The regulator expanded the relief to cover more firms while licence applications continue under INFO 225.
- The extension follows the High Court’s Block Earner ruling and comes ahead of Australia’s 2027 digital asset framework.
According to ASIC, the extension replaces the previous June 30 deadline and applies to businesses seeking an Australian Financial Services (AFS) licence, as well as companies that may require market or clearing and settlement licences.
The regulator also expanded the relief to include digital asset firms operating through authorized representatives or intermediary arrangements with licensed entities.
ASIC said it has received around 30 licence applications since updating its digital asset guidance in October 2025, when it clarified that many crypto-related products fall within Australia’s existing financial services laws.
Extension gives firms more time to comply
Following the October guidance update, ASIC introduced a no-action position so eligible businesses could continue operating while preparing licence applications. Through Information Sheet 225 (INFO 225), the regulator stated that many digital asset products qualify as financial products under Australia’s technology-neutral legal framework, meaning providers often require an AFS licence.
According to ASIC, the temporary relief is intended to support businesses transitioning into the licensing regime while applications continue to be assessed. The regulator added that companies relying on authorized representatives or similar arrangements will now also remain covered during the extended transition period.
The latest decision comes days after Australia’s High Court unanimously ruled 7-0 in ASIC’s favor in its long-running case against Block Earner. As previously reported by crypto.news, the court found that the former fixed-yield crypto product offered by Web3 Ventures Pty Ltd, which operates as Block Earner, functioned as both a financial investment facility and a derivative under the Corporations Act.
The High Court determined that investor returns depended on movements in underlying digital asset prices and exchange rates, supporting ASIC’s interpretation that certain crypto products fall within existing financial services legislation. The case will now return to the Full Federal Court, which will consider ASIC’s appeal regarding penalties.
More regulatory changes remain ahead
While the licensing relief has been extended, ASIC noted that the temporary arrangement remains separate from Australia’s Digital Asset Framework, which Parliament passed in April and is scheduled to take effect on April 9, 2027.
Under that framework, digital asset platforms and tokenized custody platforms will formally enter Australia’s financial services licensing regime. ASIC warned in a May announcement that firms obtaining licences under INFO 225 may still need to add Digital Asset Platform (DAP) and Tokenized Custody Platform (TCP) authorisations once the new framework begins.
The licensing changes also arrive as Australia considers broader reforms affecting digital asset investors. As previously reported by crypto.news, the government has proposed replacing the current 50% capital gains tax discount with an inflation-indexed model from July 1, 2027.
Under the proposal, taxable gains would be adjusted for inflation rather than automatically receiving the existing discount after a one-year holding period, a change that could increase tax bills for many long-term crypto investors during strong market cycles.
