ASIC Warns Unlicensed Crypto Firms: Apply by Sept 30 or Face 10% Penalty

The Australian Securities and Investments Commission (ASIC) is warning unlicensed cryptocurrency firms to apply for licenses by September 30 or face penalties of up to 10% of their annual turnover. The deadline marks the end of temporary enforcement relief, which was put in place after consultations with the industry in December 2024.

The notice applies to companies that trade in financial products involving digital assets, and ASIC has clarified that not every token or cryptocurrency requires a license. However, firms must lodge new applications or variations by September 30 if they need an Australian Financial Services License, Australian Market Licence, or Clearing and Settlement Facility Licence.

ASIC's guidelines state that companies should identify the rights associated with each digital asset and cannot rely solely on its technological construction or nomenclature. The regulator has also noted that certain products related to cryptocurrencies, such as stablecoins and wrapped tokens, may require licensing.