AFCA Opens Doors to Digital Asset Dispute Resolution in Australia

Australians dealing with cryptocurrencies, stablecoins, or tokenized securities now have a clearer path to resolve disputes through the Australian Financial Complaints Authority (AFCA). Starting October 1, the ombudsman announced that users can bring unresolved disputes to AFCA if their digital asset provider is a member. The move follows ASIC’s requirement for retail-facing digital asset firms to join AFCA before applying for licenses by September 30, with non-compliant firms facing fines up to 10% of their annual turnover.

AFCA has listed 67 digital asset businesses as members, including major players like Coinbase Australia, Kraken’s Bit Trade, Swyftx, CoinSpot, and Binance Australia. Consumers are advised to use AFCA’s find-a-financial-firm tool to verify if their provider is a member. AFCA’s lead ombudsman for investments and advice, Shail Singh, emphasized that this requirement provides consumers with a clear pathway to complain if something goes wrong.

ASIC’s no-action letter, which required firms to join AFCA before lodging license applications, also mandated that members remain affiliated for at least a year after stopping the use of relief. The regulator had initially set a June 30 deadline, later extending it to September 30. ASIC reported receiving over 45 license applications since updating its crypto licensing guidance in October 2025.

Since its establishment, AFCA has handled over 1,000 complaints related to digital assets in the past six years. Common issues include scams, misunderstandings of product terms, and failures to act in a client’s best interest. Singh noted that digital assets are increasingly integral to managing and moving money, underscoring the importance of independent dispute resolution services.