🚨 Crypto AFSL Licensing: How to Comply with New ASIC Laws & Registration Requirements
🚨 Why Crypto Firms Now Need AFSLs or ACLs
The Australian crypto regulatory landscape is tightening. With ASIC’s increasing enforcement and Treasury’s proposed reforms, many crypto businesses are now required to obtain crypto AFSL licensing or an Australian Credit Licence (ACL), depending on the financial nature of their products and services.
If you are operating a crypto exchange, custody service, staking platform, or offering tokenised lending or credit, your activities may fall within the scope of a regulated financial service triggering AFSL obligations.
✅ When Is Crypto AFSL Licensing Required?
| Type of Crypto Activity | ASIC Licensing Requirement |
|---|---|
| Digital asset custody | May require crypto AFSL licensing (custodial/depositary service) |
| Crypto derivatives trading | Requires full AFSL |
| Staking-as-a-service | May be treated as a financial product triggering AFSL |
| Crypto lending | May require an ACL or AFSL, depending on structure |
| Tokenised yield products | Likely to be considered managed investment schemes |
| Fiat lending secured by crypto | Often requires ACL |
| Spot crypto exchange only | AUSTRAC DCE registration required, but AFSL may still apply depending on features |
📌 NOTE: If you’re advertising a yield, facilitating borrowing/lending, or issuing crypto-based investment products, crypto AFSL licensing should be your default assumption.
🧾 ASIC Expectations for Crypto AFSL Licensing
To obtain an AFSL for crypto-related services, ASIC expects applicants to:
- Appoint qualified Responsible Managers with relevant crypto and financial product experience
- Submit a compliant and risk-aware business model
- Provide financial forecasts and demonstrate solvency
- Comply with Design & Distribution Obligations (DDO)
- Maintain external dispute resolution membership (AFCA)
- Ensure strong cybersecurity protocols and internal controls
- Submit a complete application via ASIC Connect
ASIC’s stance is clear: crypto firms must meet the same obligations as traditional financial services if their services fall within regulated activities.
📝 Licensing Process: Crypto DCE Registration, AFSL and ACL
1. DCE Registration with AUSTRAC
- AML/CTF Program setup
- Compliance officer appointment
- DCE registration (required for all exchanges offering fiat-to-crypto services)
2. Crypto AFSL Licensing or ACL Application
- Prepare documentation (compliance, RM resume, organisational structure)
- Lodge via ASIC Connect
- Respond to requisitions or information requests from ASIC
3. Estimated Timelines
- DCE registration: 2–4 weeks
- Crypto AFSL licensing: 4–9 months
📋 Ongoing Annual Compliance Checklist for Crypto AFSL Licence Holders
| Requirement | Description |
|---|---|
| Annual Compliance Certificate | Lodge via ASIC within 45 days of licence anniversary |
| AFCA Membership | Must remain current and active |
| Professional Indemnity Insurance | Must reflect crypto-specific risks |
| Training & CPD | Responsible Managers must complete accredited hours annually |
| Breach Reporting (RG 78) | Any reportable situation must be disclosed within 30 days |
| Risk Review & Audit | Must address unique crypto operational risks (custody, volatility, cybersecurity) |
| Cybersecurity Review | Should include independent penetration testing and audits |
🔐 Pro tip: Treat your crypto AFSL licensing obligations as a living process, not a once-off event. Cloud-based compliance platforms like 6clicks or ComplyFlow can streamline documentation and internal audits.
⚖️ Consultant vs. Law Firm: Who Should Handle Your Crypto AFSL Licensing?
| Feature | Licensing Expert (Consultant) | Traditional Law Firm |
|---|---|---|
| Experience in Crypto AFSL Licensing | over 20 years industry experience in Finance and 12 years in crypto | Limited or generalist |
| Cost Model | Fixed fee | Hourly billing |
| Turnaround Time | 4–6 months ( varies) | 6–9+ months |
| AFSL/ACL/DCE Support | End-to-end guidance | Often siloed departments |
| Post-lodgement ASIC Requisition Help | Included in service | Billed per hour |
| Tech fluency (DeFi, NFTs, APIs) | High | Often limited |
| Best For | Startups, fintechs, exchanges, token issuers | Institutional players, M&A-focused firms |
🔍 Insight: If your business needs rapid, practical, and cost-effective crypto AFSL licensing support—Licensing Expert delivers results without hidden fees or legal delays.
📣 Final Thoughts
Crypto AFSL licensing is no longer optional it is a regulatory necessity. Whether you operate a yield bearing token, a crypto lending platform, or offer financial advice around digital assets, ASIC’s message is clear: Get licensed or risk enforcement.
Licensing Expert gives you the tools, documents, and roadmap to navigate DCE registration, AFSL and ACL licensing, and ongoing compliance without the law firm price tag.
🚀 Ready to Apply for Your Crypto AFSL Licence?
Let’s get your crypto project compliant.
📧 Email us at info@licensingexpert.com.au
🌐 Visit www.licensingexpert.com.au
📞 Call 02 8068 0995
