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On December 19, 2024, the Australian Securities and Investments Commission (ASIC) extended its sector-wide no-action position for digital asset businesses to September 30, 2026, providing an additional three months for firms to apply for or vary an Australian Financial Services (AFS) licence. ASIC has also expanded the scope of its no-action position to encompass digital asset businesses operating under, or entering into, authorised representative arrangements with an AFS licence holder, and those operating under, or entering into, intermediary authorisation arrangements with an AFS licence holder. The extension and expanded scope apply equally to firms requiring an Australian Market Licence or Clearing and Settlement facility licence, which must notify ASIC in writing of their intention to apply and hold a pre-meeting with ASIC. ASIC's decision reflects a pragmatic response to industry transition challenges and supports an orderly path to licensing while maintaining focus on investor protection and market integrity. Since October 2025, following ASIC's updates to Information Sheet 225 Digital Assets: Financial Products and Services (INFO 225), ASIC has received approximately 30 licence applications from digital asset businesses. The updated guidance clarifies how existing laws apply to digital assets and related products, strengthening investor protections and providing firms with greater certainty to operate and innovate. ASIC's position that financial product definitions in current law are broad and technology neutral was recently confirmed by the High Court. Digital asset businesses transitioning to the new licensing regime can contact ASIC at fintech@asic.gov.au. ASIC's updated class no-action letter for digital asset businesses outlines the full scope and conditions of the extended no-action position. The extension aligns with and supports the government's broader Digital Asset Framework reforms and ASIC's 18-month roadmap for the implementation of digital assets law reform.