The deadline for ASIC’s extended sector-wide no-action position for digital asset firms providing financial services is next week. On 30 September 2026, the ASIC no-action letter for digital asset businesses (No-Action Letter) expires, meaning that businesses relying on ASIC’s no-action position must apply for or vary an Australian financial services licence or risk operating in breach of financial services law.
ASIC has received over 45 licence applications from businesses seeking relevant authorisations to provide financial services relating to digital assets since the updated Information Sheet 225 Digital assets: Financial products and services (INFO 225) was released in October 2025.
The end of the transitional relief represents the next step in the regulation of Australia’s digital asset industry, as we await the new regime under the Corporations Amendment (Digital Assets Framework) Act 2026 (DAF Framework) commencing in April 2027. However, with further transitional relief to follow the enactment of the new regime, businesses must ensure they are appropriately licensed under the current law.
As the deadline approaches, we have set out six things that digital asset businesses must consider under the current financial services regime, or risk operating without the appropriate licence.
1. Check your digital assets: are there “financial products” involved?
Many platforms offer access to a wide range of digital assets – in some cases, hundreds. In our experience, at least some of these are “financial products” under the Corporations Act 2001 (Cth) (Corporations Act). This can trigger licensing for several regulated activities.
For example, some typical digital asset types we encounter that are not always well understood as potentially being financial products (potentially because of different regulatory treatment overseas) include:
- Stablecoins
- Tokenised gold products
- Tokenised securities
- In some cases, certain governance tokens
For example, INFO 225 and ASIC’s separate relief instruments indicate ASIC’s view that some stablecoins, particularly those designed to be used as a store of value and means of payment, may constitute a “non-cash payment facility”, which is a regulated financial product under the Corporations Act. In general terms, a non-cash payment facility enables a person to make payments (other than by physical delivery of fiat currency in notes/coins) to more than one person. This means that facilitating fiat-to-stablecoin exchanges, enabling spot trading of stablecoins or offering other financial services (eg custody) in relation to stablecoins may require a licence once the No-Action Letter ends.
2. Check your platform specifics: is your “spot” trading offering really outside the scope?
At a high level, spot trading of digital assets that are not “financial products” may not trigger licensing under the Corporations Act and may therefore be unaffected by the end of the No-Action Letter. For such platforms, the DAF Framework may be more relevant.
However, many spot trading platforms offer additional features that may bring them within the regulatory perimeter. For example, if an exchange bundles its trading services with other products or features (such as staking, lending, custody, or launching a new token), the arrangement may constitute a financial product either separately or on an aggregated basis. The High Court recently applied this aggregated approach ASIC v Web3 Ventures Pty Ltd. Similarly, businesses and exchanges must be certain that the digital assets offered on their platform do not themselves meet the broad definition of a financial product, which extends beyond common categories such as “securities” and “derivatives”.
Similarly, if “spot” trading also includes financial accommodation (credit), an FX arrangement (eg to gain access to a USD trading pair), a forward component, a derivative element, or a non-cash payment facility or some other feature, the services may be regulated.
3. Check your content: does it involve financial product advice or material that needs to be compliant with Australia’s consumer laws?
Financial product advice covers a broad range of activities that some may not realise are regulated activities. INFO 225 makes it clear that advice in relation to digital assets that are financial products includes making comparisons between digital assets and traditional financial products. ASIC has set minimum training standards under RG 146 for financial product advisers, requiring knowledge of the specific financial products offered. As the No-Action Letter ends, businesses should review their marketing materials and other representations on or around their platforms and exchanges, as they relate to digital assets that may constitute financial products.
Even if your activities do not involve any “financial products”, Australia imposes a wide range of consumer protection laws that can apply to things like:
- Platform content
- Marketing materials
- Terms and conditions
- Online interaction (eg through social media)
- Customer engagement
4. Check for any other products: No-action Letter does not cover derivatives in relation to digital assets
While the No-Action Letter to date has covered a broad range of financial services relating to digital assets, it expressly excludes derivatives (other than wrapped tokens) in relation to digital assets from its scope. This includes, for example, perpetual derivatives common on a range of centralised and decentralised digital asset platforms, but extends to traditional products such as contracts for difference and options. Providers of these products must ensure that they have the requisite licensing in place, particularly where they also provide related services that are currently covered by the No-Action Letter.
5. Check if any “reverse enquiry” strategy from offshore is really compliant
Overseas operators offering services to Australian customers must consider their licensing obligations and options.
Australia has a very broad jurisdictional perimeter that can make a “reverse enquiry” strategy from offshore (that is, responding to request from Australia without proactive marketing and without a licence) very difficult, if not ultimately impracticable.
There are, however, useful exemptions for certain operators. These are highly dependent on the facts.
6. Don’t forget about AML/CTF and other compliance areas!
Australia has a distinct regulator for anti-money laundering, counter-terrorism financing and proliferation financing (AML/CTF), being the Australian Transaction Reports and Analysis Centre (AUSTRAC). Australia already has in place a fully refreshed regime in relation to virtual asset services that took effect this year. In many cases, platform activities also engage other “designated services”, such as those relating to “value transfers”. A full front-to-back review of your services can be beneficial to ensure everything is covered. AUSTRAC continues to be focussed on this sector, providing both valuable information and undertaking material enforcement and other action.
Platforms offering services into Australia should also be aware of their tax, competition and other obligations. Our Mallesons Guide to Doing Business in Australia is an excellent starting point. We’d be delighted to offer advice as needed.
How we can help
If you have any questions about how the end of the No-Action Letter may affect your business, or would like assistance with Australian financial service licence applications, variations or compliance reviews, please contact us. We are closely monitoring developments as we approach the commencement of the DAF Framework and are well placed to advise on the implications of the new regime for your business.
