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Australia warns unlicensed crypto firms of fines up to 10% of annual turnover
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- DeepHorus
Australian regulators have issued a stark warning to cryptocurrency firms operating without a license, announcing that penalties for non-compliance could reach as high as 10% of a company's annual turnover. The Australian Securities and Investments Commission (ASIC) has set a firm deadline of September 30 for these businesses to apply for the necessary financial services license or risk severe enforcement action. This move marks a significant escalation in the country's efforts to bring the digital asset sector under formal regulatory oversight.
The warning comes as a temporary enforcement relief period, which had provided a grace period for crypto businesses, is set to expire on September 30. ASIC had previously extended this relief from June 30 to the current deadline. The regulator has stated that starting October 1, any company requiring authorization that has not met the conditions of the no-action position could be operating in breach of financial services law.
Since updating its guidance in October 2025, ASIC has recorded more than 45 digital asset-related license applications. This indicates a growing move towards compliance within the industry. Firms must apply for a license or notify the regulator and hold a pre-application meeting for certain types of licenses, such as market or clearing and settlement licenses, before the deadline passes.
The penalties outlined are substantial, including both civil and criminal charges. A fine of up to 10% of annual turnover is a major financial deterrent, especially for larger firms. This enforcement action is separate from Australia's upcoming comprehensive Digital Asset Framework, which is scheduled to take effect on April 9, 2027.
The ASIC's firm stance reflects a global trend of tightening regulations in the cryptocurrency space. It signals that the era of informal operation for crypto businesses in Australia is ending. Companies now face a clear choice: enter the formal licensing process or exit the market to avoid legal consequences.
Looking ahead, the September 30 deadline will be a critical juncture for the Australian crypto industry. The number of applications is likely to surge as the final date approaches. This regulatory push will likely reshape the market, potentially favoring larger, more established players capable of meeting the compliance costs.
