This week in crypto, Australia’s evolving digital asset regulatory framework remained in focus after the Australian Securities and Investments Commission (ASIC) extended transitional licensing relief for digital asset businesses. Elsewhere, investors continued to monitor Strategy’s Bitcoin funding model as market weakness weighed on its shares, while US lawmakers examined the growing use of artificial intelligence in investment advice. In the Web3 sector, Coinbase’s Base network experienced a temporary outage after a consensus failure halted block production.
Australia’s digital asset industry will have additional time to transition to the country’s new licensing framework after ASIC extended its no-action position until 30 September 2026. The extension provides crypto businesses requiring an Australian Financial Services (AFS) licence with an extra three months to submit or vary their applications while continuing to operate.
ASIC also expanded the relief to include businesses operating under authorised representative and intermediary arrangements with existing AFS licence holders. According to the regulator, the extension is intended to support an orderly transition to the new licensing regime while maintaining investor protection and market integrity.
Around 30 digital asset businesses have submitted licence applications since October 2025. While the announcement does not introduce new regulation, it provides greater certainty for businesses working through Australia’s evolving licensing framework and allows additional time for firms to complete the transition before the new deadline.
Strategy (NASDAQ: MSTR) remained in focus this week as both its common shares and preferred shares (STRC) continued to trade lower alongside Bitcoin. The company still holds 847,363 BTC, making it the world’s largest corporate Bitcoin holder, but investors are increasingly watching whether weaker share prices could affect its ability to fund future Bitcoin purchases.
Strategy has historically financed much of its Bitcoin accumulation through issuing shares and preferred securities. With STRC trading well below its intended US$100 issue price, raising new capital has become less efficient, potentially slowing the pace of additional Bitcoin purchases. While Michael Saylor’s long-term strategy remains unchanged, markets will be watching closely to see whether improvements in both Bitcoin’s price and Strategy’s share performance restore its fundraising capacity.
Regulation also remained in focus in the United States, where a group of Democratic lawmakers formally questioned the Securities and Exchange Commission over the growing use of artificial intelligence in investment advice. The lawmakers raised concerns about AI-powered trading agents being offered to retail investors and how existing regulations will apply as the technology becomes more widely adopted.
While AI investment tools are currently used primarily in traditional financial markets, lawmakers warned they could quickly expand into options, futures and cryptocurrencies. As AI adoption accelerates, regulators face the challenge of balancing innovation with investor protection, particularly in crypto markets where automated trading systems already play a significant role.
In the Web3 sector, Coinbase’s Layer-2 blockchain, Base, experienced an outage lasting approximately two hours after an invalid block triggered a consensus failure, preventing new blocks from being produced across the network.
The Base team confirmed that user funds remained safe while engineers worked to restore the network. Services resumed after approximately two hours, with developers identifying the root cause and committing to publish a full post-mortem outlining the issue and planned improvements.
Although the disruption was short-lived, it serves as a reminder that even some of the industry’s largest blockchain networks continue to face technical challenges as adoption and transaction volumes continue to grow.
As digital asset regulation continues to develop, Australia’s licensing framework is gradually taking shape while institutional investors remain focused on Bitcoin market dynamics and emerging technologies such as artificial intelligence. At the same time, ongoing improvements to blockchain infrastructure will remain essential as the industry continues to mature and attract broader adoption.
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