Regulatory AlertsAustralia: fintech & payments regulation
RegulatedAFS licensing via ASIC; APRA regulates payment systems; strict AML/CTF via AUSTRAC
- Lead regulator
- Australian Securities and Investments Commission (ASIC)
- Core law
- Corporations Act 2001
- Entry capital
- No statutory minimum capital for AFS; APRA requires AUD 50m for payment systems
- Approval timeline
- 6-12 months for AFS licence
- Customer assets
- Trust accounts required; no specific e-money license
- Data protection
- Privacy Act 1988 · OAIC
- Sandbox
- Yes - ASIC Regulatory Sandbox
Australia regulates fintech primarily through the Australian Financial Services (AFS) licence regime under the Corporations Act 2001, administered by ASIC. Entities providing payment services must also register with AUSTRAC for AML/CTF compliance. For systemic payment systems, the Australian Prudential Regulation Authority (APRA) imposes prudential standards and capital requirements.
Which licence do you need?
| Your activity | Requirement | Capital | Timeline | Authority |
|---|---|---|---|---|
| Payment processing / gateway | LicenceAFS Licence[1] Payment processing is a financial service requiring AFS licence | — | — | ASIC |
| E-money & wallet issuance | LicenceAFS Licence[1] E-money issuance is a financial service requiring AFS licence | — | — | ASIC |
| Domestic money transfer | LicenceAFS Licence[1] Domestic transfers are financial services requiring AFS licence | — | — | ASIC |
| Cross-border remittance | LicenceAFS Licence[1] Cross-border remittances are financial services requiring AFS licence | — | — | ASIC |
| Agent network | LicenceAFS Licence[1] Agent networks require AFS licence or authorization | — | — | ASIC |
| Open banking / account information | LicenceAFS Licence[1] Account information services require AFS licence | — | — | ASIC |
| Foreign-exchange services | LicenceAFS Licence[1] FX services are financial services requiring AFS licence | — | — | ASIC |
New — what changed recently
- 2026-04-21RG 1 Applying for and varying an AFS licence — Updated guidance on ASIC's approach to assessing AFS licence applications and required documentation.
- 2026-04-21RG 104 AFS licensing: Meeting the general obligations — Clarified regulatory expectations for AFS licensees regarding general obligations under the Corporations Act.
- 2026-04-21RG 166 AFS licensing: Financial requirements — Outlined financial requirements for AFS licensees, varying based on products and services offered.
- 2026-04-21RG 105 AFS licensing: Organisational competence — Clarified criteria and standards for demonstrating organisational competence under the Corporations Act.
Market-entry checklist
- 1Apply for AFS LicenceSubmit application to ASIC under Corporations Act 2001, demonstrating competence and compliance.
- 2Register with AUSTRACRegister as a Money Service Business for AML/CTF compliance if handling payments.
- 3Establish Compliance ProgramImplement robust AML/CTF program and risk management framework as required by law.
- 4Secure Capital AdequacyEnsure sufficient financial resources to meet ASIC's financial requirements for AFS licensees.
- 5Consider APRA RegistrationIf operating a systemic payment system, register with APRA and meet prudential standards.
Sources
- RG 1 Applying for and varying an AFS licence · 2026-04-21