Fintech Licensing Australia: Do You Need an AFSL, ACL or Both?
💡 Why Licensing Matters in Fintech
If you are launching a fintech product in Australia, your licensing obligations depend on whether your platform touches financial products, credit activities, or digital currency exchange services. The Australian Securities and Investments Commission (ASIC) has taken a firm stance: If you are handling money, credit, or investments you are likely a regulated entity.
That means you may need an AFSL, ACL, or both.
This guide explains how fintech licensing in Australia works, which licence you need, and how to approach compliance the smart way.
🧾 AFSL vs ACL: What’s the Difference?
| Licence | Description | Common Fintech Use Cases |
|---|---|---|
| AFSL (Australian Financial Services Licence) | Required to provide financial product advice, deal in financial products, operate MISs, or provide custodial services | Investment platforms, robo-advisors, crypto custody, wallets, payment gateways, FX brokers, staking |
| ACL (Australian Credit Licence) | Required to engage in credit activities—offering credit, brokering loans, collecting payments | BNPL, SME lending, salary advance, invoice financing, consumer credit apps |
📌 NOTE: Some fintechs straddle both areas. For example, a crypto credit card or lending service secured by digital assets may require both AFSL and ACL.
🔍 What Triggers Licensing Under ASIC?
| Activity | Licence Required |
|---|---|
| FX or multi-currency wallet | AFSL |
| Crypto staking, yield products | AFSL |
| Peer-to-peer lending | ACL |
| Embedded BNPL in eCommerce checkout | ACL |
| Tokenised assets/platform for trading | AFSL |
| Salary advance / earned wage access | ACL |
| Superannuation robo-advice | AFSL |
| Business loan origination | ACL |
| Stablecoin linked to fiat rails | May require both AFSL & DCE registration |
| Wallet with financial reporting/advice | AFSL |
📋 Fintech Licensing Australia: Annual Compliance Checklist
| Obligation | Description |
|---|---|
| Annual Compliance Certificate | Lodged via ASIC Connect within 45 days of your licence anniversary |
| AFCA Membership | Mandatory for all AFSL/ACL holders offering services to retail clients |
| Professional Indemnity Insurance | Policy must match your licensed activities |
| Risk Management Framework | Must be updated annually and reviewed for fintech-specific risks |
| Cybersecurity Compliance | ASIC expects annual risk reviews, especially for fintechs handling customer funds |
| Training & CPD for RMs | Required under ASIC RG 105 (AFSL) and RG 206 (ACL) |
| Breach Reporting (RG 78) | Reportable situations must be disclosed within 30 days |
📝 Licensing Process for Fintech Startups
- Determine Your Licence Type(s)
Assess your platform, product features, and business model to confirm whether AFSL, ACL, or both are required. - Appoint Responsible Managers
They must have proven experience in financial services or credit and pass ASIC’s “fit and proper” test. - Prepare Application Documents
This includes business descriptions, financial forecasts, risk strategies, dispute resolution policies, and more. - Lodge via ASIC Connect
ASIC may issue requisitions—be ready to clarify, defend, or adjust your documentation. - Typical Timeframe
- AFSL: 4–9 months
- ACL: 3–6 months
- Combined: Expect 6–10 months total
⚖️ Licensing Expert vs. Law Firms: Fintech Setup Comparison
| Feature | Licensing Expert | Traditional Law Firm |
|---|---|---|
| Experience in Fintech Licensing | High – crypto, paytech, lending, robo-advice | General AFSL/ACL background |
| Cost Transparency | Fixed-fee packages | Hourly + fixed application fees |
| Licensing Timeframes | 4–6 months (streamlined workflow) | 6–9+ months |
| Post-Lodgement ASIC Support | Included | Charged separately |
| Customised for Fintech/Startups | Yes – rapid deployment & scaling | Often corporate-focused |
| Tech Fluency | High – API, SaaS, token models | Limited understanding |
🔎 If you’re building in Web3, lending, or embedded finance, working with Licensing Expert means lower costs, faster outcomes, and no legal red tape.
🚀 Conclusion: Start Smart with Fintech Licensing in Australia
Fintech licensing in Australia isn’t just about ticking boxes—it’s about building a compliant, scalable foundation that keeps regulators happy and investors confident.
Whether you need an AFSL, an ACL, or both, Licensing Expert helps founders and fintech teams get there faster, cheaper, and with fewer surprises.
✅ Ready to Start Your Licensing Journey?
📧 Email: info@licensingexpert.com.au
🌐 Website: www.licensingexpert.com.au
📞 Phone: 02 8068 0995
