Australia Warns Unlicensed Crypto Firms of Fines Up to 10% of Annual Revenue — Late September Is the Deadline

Australia's financial regulator has warned cryptocurrency firms operating under temporary relief measures that they could face fines of up to 10% of annual revenue if they fail to obtain financial services licenses by September 30.

The Australian Securities and Investments Commission (ASIC) announced on the 3rd that businesses requiring an Australian Financial Services (AFS) license must complete new applications or variations to existing licenses by the end of this month. Firms requiring market operation and clearing and settlement licenses must also schedule pre-application meetings.

The measure directly affects firms that have received transitional exemptions from certain enforcement actions under ASIC's temporary "no-action" position. Starting October 1, crypto firms that continue operating without meeting regulatory authorization requirements will be considered in violation of Australia's financial services laws and may face civil and criminal sanctions.

The regulator emphasized that businesses failing to meet license conditions after the deadline could face significant consequences, including substantial monetary penalties and potential criminal prosecution.

Application numbers are surging as the deadline approaches. Since ASIC revised its guidance on digital asset businesses last October, more than 45 digital asset-related license applications have been received. The regulator noted that submissions have increased noticeably as the deadline draws nearer.