Australia’s securities regulator ASIC has extended temporary licensing relief for crypto firms to Sept. 30, replacing the previous June 30 deadline and giving businesses an extra three months to align with current rules. The relief applies to firms seeking an Australian Financial Services (AFS) licence, as well as companies that may need market licences or clearing and settlement licences.
ASIC also widened the scope of the measure. Digital asset businesses operating through authorized representatives or intermediary arrangements with licensed entities are now included in the transition period. The regulator said the purpose is to let eligible firms keep operating while their applications are still being assessed.
INFO 225 remains the basis for the transition
ASIC said it has received about 30 licence applications since updating its digital asset guidance in October 2025. In that update, the regulator clarified that many crypto-related products fall within Australia’s existing financial services laws. Under Information Sheet 225, a range of digital asset products may be treated as financial products, which means providers often need an AFS licence.
After issuing that guidance, ASIC adopted a no-action position so eligible firms could continue operating while preparing submissions. The new extension keeps that temporary arrangement in place and broadens who can rely on it. For firms using authorized representative structures, that clarification matters immediately.
High Court ruling in Block Earner backs ASIC’s view
The decision came only days after Australia’s High Court ruled 7-0 in ASIC’s favor in the Block Earner case. 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 said investor returns depended on movements in underlying digital asset prices and exchange rates. That finding supports ASIC’s position that some crypto products already sit inside the country’s financial services regime. The matter will now return to the Full Federal Court, which will consider ASIC’s appeal on penalties.
The 2027 digital asset framework is still on track
ASIC stressed that the temporary relief is separate from Australia’s Digital Asset Framework, which Parliament passed in April and is due to take effect on April 9, 2027. Once that framework starts, digital asset platforms and tokenized custody platforms will formally enter the financial services licensing system.
In a May announcement, ASIC said firms licensed under INFO 225 may still need to add Digital Asset Platform (DAP) and Tokenized Custody Platform (TCP) authorizations after the new framework begins. The latest reprieve changes the transition timeline, but not the broader compliance path.
Tax reform proposals are also being discussed
The licensing shift comes as Australia considers wider policy changes affecting digital asset investors. The government has proposed replacing the current 50% capital gains tax discount with an inflation-indexed model starting July 1, 2027.
Under that proposal, taxable gains would be adjusted for inflation instead of automatically receiving the current discount after a one-year holding period. In strong market cycles, that change could increase tax bills for many long-term crypto investors.