Digital asset businesses are running out of time to apply for an Australian Financial Services (AFS) licence from ASIC or risk being in breach of financial services laws.

The corporate watchdog is warning financial services involving digital asset financial products must apply by 30 June 2026 for a new licence or a variation of their existing AFSL, before ASIC no-action position expires.

Unlicensed conduct carries serious civil and criminal penalties under law, including significant fines that could reach up to 10 per cent of annual turnover.

ASIC released updated guidance last year on what digital asset products are considered to be financial products, including stablecoins, wrapped tokens, tokenised securities and digital…