Australia Warns Unlicensed Crypto Firms of Fines Up to 10% of Annual Turnover

ASIC Issues Final Warning to Crypto Firms

The Australian Securities and Investments Commission (ASIC) has warned cryptocurrency companies that they must apply for a financial services license by September 30, 2026, or face penalties. These penalties include fines that can reach up to 10% of the company's annual turnover.

ASIC stated that businesses requiring an Australian Financial Services license must apply or seek changes to existing licenses before the deadline. Firms needing market or clearing and settlement licenses must also notify the regulator and hold a pre-application meeting.

Key Deadline and Penalties

• Deadline for applications: September 30, 2026.
• Potential fines: Up to 10% of annual turnover for non-compliance.
• Starting October 1, companies without authorization may be in breach of financial services law.
• ASIC has recorded over 45 digital asset-related license applications since updating guidance in October 2025.
• Temporary enforcement relief was extended from June 30 to September 30, 2026.

What ASIC's Statement Says

ASIC emphasized that from October 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. The regulator warned that they may face civil and criminal penalties.

The transition relief is separate from Australia’s Digital Asset Framework, which is set to take effect on April 9, 2027.

Facts Confirmed by the Announcement

It is confirmed that ASIC has issued a warning to unlicensed crypto firms with a deadline of September 30, 2026. Fines can be up to 10% of annual turnover. ASIC has received more than 45 applications for digital asset-related licenses. The temporary relief period was extended to September 30, 2026. The Digital Asset Framework will start on April 9, 2027.

Why This Matters for Crypto Businesses in Australia

This warning matters because it sets a clear deadline for crypto firms to comply with licensing requirements. Non-compliance could lead to significant financial penalties and legal consequences, affecting their ability to operate in Australia.

Upcoming Regulatory Milestones

After the September 30 deadline, ASIC will begin enforcing penalties for non-compliance. The broader regulatory landscape will change with the implementation of the Digital Asset Framework in April 2027.

Sources

• Cointelegraph