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Australia Warns Unlicensed Crypto Firms of Fines Up to 10% of Annual Revenue
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Australia’s securities regulator has notified cryptocurrency firms operating under temporary relief measures that they must obtain financial services licenses by September 30. Those that miss the deadline could face fines of up to 10% of annual revenue and criminal sanctions. The relief period was extended once from late June to late September after industry feedback, with the scope expanded to include firms operating as authorized representatives. Since the guidance was revised last October, more than 45 license applications have been received, with submissions surging as the deadline approaches. This measure operates separately from the Digital Asset Framework set to take effect next April.
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Australia’s financial regulator has warned cryptocurrency firms operating under temporary relief measures that they could face fines of up to 10% of annual revenue if they fail to obtain financial services licenses by September 30.
The Australian Securities and Investments Commission (ASIC) announced on the 3rd that businesses requiring an Australian Financial Services (AFS) license must complete new applications or variations to existing licenses by the end of this month. Firms requiring market operation and clearing and settlement licenses must also schedule pre-application meetings.
The measure directly affects firms that have received transitional exemptions from certain enforcement actions under ASIC’s temporary “no-action” position. Starting October 1, crypto firms that continue operating without meeting regulatory authorization requirements will be considered in violation of Australia’s financial services laws and may face civil and criminal sanctions.
The regulator emphasized that businesses failing to meet license conditions after the deadline could face significant consequences, including substantial monetary penalties and potential criminal prosecution.
Application numbers are surging as the deadline approaches. Since ASIC revised its guidance on digital asset businesses last October, more than 45 digital asset-related license applications have been received. The regulator noted that submissions have increased noticeably as the deadline draws nearer.
The relief period was extended once from the original June 30 deadline to September 30, reflecting industry feedback. At that time, the scope was expanded to include crypto firms operating as authorized representatives of licensed entities or conducting business through certain intermediary structures. Approximately 30 applications had been received at the time of the extension, with numbers continuing to grow in the following weeks.
The transitional relief now covers a broader range of business models following the expansion. While firms gained more flexibility as they enter the regulatory process, it has been made clear that compliance becomes mandatory after September 30.
This license transition relief measure operates separately from Australia’s Digital Asset Framework, which is set to take effect on April 9 next year. The new framework is expected to introduce comprehensive regulation of digital asset service providers, complementing existing financial services laws. ASIC’s current measures focus on introducing immediate oversight of the sector, while the upcoming framework is expected to further specify licensing, custody, and operational standards.
ASIC has been intensifying oversight of crypto firm compliance, recently ordering Cryptolink to shut down its Bitcoin ATMs over reporting obligation violations. As the regulatory environment rapidly takes shape, market participants are accelerating their efforts to formalize operations in Australia.
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Source: finance.biggo.com