What is an AFSL and why is it needed for digital assets?

An Australian Financial Services Licence is needed to carry on a business of providing financial services in Australia. Many digital asset products, such as some tokens, wrapped tokens and yield products, are financial products under existing law, and the Digital Assets Framework Act 2026 adds digital asset platforms and tokenised custody platforms to the regime from April 2027.

What counts as a digital asset under the new rules?

The Act covers digital asset platforms and tokenised custody platforms. Separately, whether a particular token, stablecoin or service is a financial product depends on its features; ASIC's INFO 225 works through examples.

How do I apply for an AFSL?

Through ASIC's online portal, with guidance on asic.gov.au. ASIC's no-action position for digital asset businesses ended on 30 September 2026, so a business that needs a licence and doesn't hold one, or isn't an authorised representative, risks operating in breach.

AFSL Digital Assets Compliance Tool

Helps digital asset businesses work out whether they need an Australian Financial Services Licence, under existing law and the Digital Assets Framework Act 2026.

Updated October 2026Built and checked by MaverickHow it's calculated Report an error

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Updates as you type

Type of platform*

Select the digital asset activity most relevant to your business.

Do you operate in Australia?*

Important for assessing AFSL requirements, given Australian jurisdiction.

Are your clients Australian-based?*

AFSL may apply if you deal with Australian retail/wholesale clients.

Main service provided*

Select the financial or crypto service your business provides.

Do you hold (or have applied for) an AFSL?*

Indicate whether you already have an AFSL or are an authorised representative.

Do you have compliance & governance systems in place?

AFSL requires fit-for-purpose compliance, governance, and reporting arrangements.

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How it works

Many digital asset products are already financial products under existing law, so the businesses dealing in them need an Australian Financial Services Licence (AFSL). ASIC's no-action position let digital asset businesses keep operating while they applied for a licence, or arranged to act as an authorised representative, until 30 September 2026. From 1 October 2026, a business that needs a licence or variation and hasn't met the position's conditions risks breaching financial services law. Separately, the Corporations Amendment (Digital Assets Framework) Act 2026 brings digital asset platforms and tokenised custody platforms into the licensing regime, which ASIC expects from April 2027. This tool gives a general indication of the likely licensing pathway from your answers; it isn't legal advice.

1Choose your business type and main crypto/asset service.
2Specify your operating region (Australia or global) and client base.
3Indicate your current licensing status and basic compliance systems.
4Review your result: does your platform require an AFSL, a new category, or are you likely exempt?
5See summary steps for next actions and compliance best practices.

Worked examples

Crypto Exchange Serving AU Retail Clients

A global token exchange lists multiple altcoins, with 40% of users from Australia. It does not yet hold an AFSL.

Marketing to Australians and arranging trades in tokens that are financial products is likely in scope. With ASIC's no-action position over since 30 September 2026, operating without a licence or authorised representative arrangement risks breaching financial services law, and the platform rules from April 2027 add further obligations.

NFT Marketplace Only Targeting Overseas

An NFT marketplace excludes Australian IP addresses and restricts signups to non-AU countries.

If it effectively excludes Australians and doesn't knowingly deal with Australian clients, it may be outside the regime, and many NFTs aren't financial products at all. If Australians can get around the controls, there may still be risk, which a legal review can assess.

Questions people ask

What is an AFSL and why is it needed for digital assets?: An Australian Financial Services Licence is needed to carry on a business of providing financial services in Australia. Many digital asset products, such as some tokens, wrapped tokens and yield products, are financial products under existing law, and the Digital Assets Framework Act 2026 adds digital asset platforms and tokenised custody platforms to the regime from April 2027.
What counts as a digital asset under the new rules?: The Act covers digital asset platforms and tokenised custody platforms. Separately, whether a particular token, stablecoin or service is a financial product depends on its features; ASIC's INFO 225 works through examples.
How do I apply for an AFSL?: Through ASIC's online portal, with guidance on asic.gov.au. ASIC's no-action position for digital asset businesses ended on 30 September 2026, so a business that needs a licence and doesn't hold one, or isn't an authorised representative, risks operating in breach.

The terms, in plain English

AFSL: Australian Financial Services Licence: required for providers of financial products/services in Australia.
Digital Asset: A digital representation of value (including tokens, stablecoins, NFTs, and digital rights) that can be transferred, traded, or used for payment/investment.
Authorised Representative: An entity/person authorised by an AFSL holder to provide financial services on its behalf. Faster to obtain and lower compliance burden for early-stage startups.
INFO 225: ASIC's Information Sheet 225, on when digital assets are financial products and what that means for the businesses dealing in them.

Official sources

Crypto Tax Compliance Calculator

Check your tax obligations for Australian crypto gains/losses.

GST Calculator

Does GST apply to your crypto transactions? Calculate it here.

Good to know

ASIC's no-action position for digital asset businesses ended on 30 September 2026. From 1 October, businesses that need a licence and haven't met its conditions risk civil and criminal penalties.
Crypto lending and earn products, and crypto derivatives other than wrapped tokens, were excluded from the no-action position.
The Digital Assets Framework Act 2026 adds digital asset platforms and tokenised custody platforms to the licensing regime, from April 2027 according to ASIC.
Holding an AFSL means ongoing obligations: risk management, compliance arrangements, dispute resolution (AFCA membership) and reporting.
Serving Australian clients from overseas doesn't by itself take a business outside the regime.

Tips

Read ASIC's INFO 225 for how it treats digital assets as financial products, and its latest digital asset news items for current deadlines.
An authorised representative arrangement with an existing licensee can be a pathway for some businesses; the licensee takes responsibility for the services.
Document how you decided your licensing scope: which products, which services, which clients.
Get legal advice on scope before launching a new product.

Common mistakes

Assuming nothing is required until the new platform rules start in April 2027: existing law already applies to digital assets that are financial products.
Assuming a licence only matters for traditional financial products: tokenised and DAO-based models can be in scope.
Assuming overseas operation exempts a business that serves Australian clients.
Launching without a written risk and compliance framework.

Compare the real products

Disclaimer: General information only. Licensing turns on the details, so talk to a lawyer who knows financial services before you rely on it.