The Australian Securities and Investment Commission (ASIC) extended the temporary licence grace period for encrypted enterprises to 30 September, with a further three months later than the original 30 June. This gives the relevant enterprises more time for transition when applying for licences and adjusting their business structures.
Extension of grace period to 30 September
ASIC states that this extension applies to businesses that are in the process of applying for an AFS licence, and also covers companies that may require a market licence or a liquidation and settlement licence.
Regulators have simultaneously expanded their scope of application. In addition to companies directly applying for licences, digital asset enterprises operating through authorized representatives or in cooperation with licensed institutions were also included in the interim arrangement.
Block Earner's better caliber.
Previously, after updating the regulatory guidelines, ASIC established a “no action” arrangement through Information Sheet 225 (INFO 225), allowing eligible enterprises to continue to operate during the preparation of licence applications. At that time, ASIC stressed that, under Australia ' s technology-neutral legal framework, a number of digital asset products might already be financial products, and that the provider would normally be required to hold an AFS licence.
A few days before the extension was issued, the Australian High Court in the Block Earner case unanimously supported the ASIC position by 7 to 0. The court found that a fixed-income encryption product previously supplied by Block Earner under the flag of Web3 Ventures Pty Ltd constituted a financial investment facility and derivative under the Companies Act.
New 2027 framework continues to move forward
The Court held that the investor ' s return depended on changes in the price and exchange rate of the bottom digital asset, which also supported the ASIC ' s judgement that part of the encrypted product had fallen under existing financial services law. The case will then be returned to the Full Federal Court to continue hearing the ASIC appeal on the penalty.
ASIC also noted that this temporary grace was not the same as the Digital Asset Framework adopted by Australia in April this year. The latter plan came into effect on 9 April 2027, when the Digital Assets Platform and the Monetization Hosting Platform will be formally incorporated into the financial services licensing system.
ASIC has previously warned that even if the enterprise currently obtains the relevant licence under INFO 225, it may need to supplement the mandate of the Digital Asset Platform (DAP) and the Monetization Host Platform (TCP) when the new framework is implemented.
Additional information:In addition to the licensing system, Australia is also discussing tax system adjustments for digital asset investors. The Government has proposed to replace the current 50 per cent capital gains tax discount with an inflation adjustment model, effective 1 July 2027, with a possible increase in the tax burden of long-term holders in a strong position.