Australia Cracks Down on Unlicensed Crypto Firms

Australia's financial regulator has issued a final warning to crypto companies to hurry up their applications for financial services licenses. The Australian Securities and Investments Commission (ASIC) reminded firms that they need a license under current law, but those that have operated by relying on a temporary regulatory reprieve could face civil and criminal penalties if they don't begin the process by September 30. Firms that require an Australian Financial Services (AFS) licence should apply for a new licence or request changes to an existing licence by the end of this month, or risk facing fines of up to 10 percent of annual revenue.

The temporary reprieve was originally set to end on June 30, but ASIC extended it by three months to September 30 and widened its scope. Since revising guidance in October last year explaining when digital assets qualify as financial products, more than 45 related licence applications have been received, with about 30 at the end of June.

The reprieve is separate from Australia's digital asset framework, which takes effect on April 9 next year. Under the new system, separate regulatory regimes will apply to digital asset platforms and tokenised asset custody platforms. ASIC said many firms that obtain licences now may need additional authorisation after the new system takes effect.