ASIC Issues 290 New AFS Licences, Tightens Oversight on Crypto and Financial Services

The Australian Securities and Investments Commission (ASIC) granted 290 new Australian Financial Services (AFS) licences in the 2024–2025 financial year while cancelling or suspending 215, reflecting the regulator's ongoing efforts to maintain oversight of the country's financial services sector.

According to ASIC, the number of new AFS licence applications rose by 10 per cent compared to the previous year, with growing interest from digital asset operators contributing to the increase. "Applications from digital asset operators are on the rise, underscoring the growing interest in the crypto sector," said ASIC Commissioner Alan Kirkland.

In total, the regulator received 1,531 licensing and registration applications during the year and finalised 1,176 of them. These included approvals for 104 new credit licences and 450 variations to existing AFS and credit licences. Meanwhile, the number of cancelled or suspended AFS licences declined by 20 per cent.

ASIC noted that 77 per cent of new AFS licence applications and 76 per cent of variation applications were decided within 150 days. Kirkland emphasised that "our licensing team plays an important role in assessing applications for licences and professional registration across the financial services and credit sectors."

The regulator also reinforced its stance on crypto oversight, requiring digital asset firms to obtain an AFS licence to operate in Australia. Following updates to its Information Sheet 225, ASIC clarified that a range of digital assets now fall under existing financial product regulations, prompting more digital asset providers to seek licences.

In addition to its licensing duties, ASIC continued its crackdown on financial scams and fraud, removing 6,900 investment scam and phishing websites over the past year.