Australia opens consultation on crypto platform rules ahead of 2027 rollout
ASIC proposes new standards for crypto operators
Australia's securities regulator, ASIC, has opened a public consultation on proposed capital, custody and trading rules for crypto platforms. The move follows Parliament's passage of the Corporations Amendment (Digital Assets Framework) Act earlier this year.
The proposals are detailed in consultation paper CP 392 and outline how digital asset operators would need to safeguard customer funds, meet financial requirements and structure their trading activities under the new regulatory framework.
Capital, custody and trading requirements
- ASIC is weighing three alternative capital models for crypto operators
- Operators without qualifying third-party custody arrangements may need to hold at least 14 million Australian dollars ($9.7 million) in net tangible assets or 10% of average revenue, whichever is greater
- Platforms would be restricted from trading for their own account and from accepting benefits that favor particular tokens
- Offshore custody would be allowed, but ASIC is seeking feedback on emergency access to private keys if an overseas parent or related company fails
- Operators must report custody wallet structures and addresses quarterly and retain records for seven years
What industry groups and executives say
Amy-Rose Goodey, CEO of the Digital Economy Council of Australia, called the release of CP 392 "an important milestone" after years of regulatory engagement. She noted the global nature of digital asset markets and said the proposal not to mandate domestic custody was significant.
Shane Chandra, CEO of OKX Australia, said the standards were "appropriately onerous" and would reward operators who had already invested in compliance, capital and custody while challenging those that had waited.
Liam Hennessy, a partner at Thomsonsons, highlighted that the reporting proposal reflected Australia's reliance on offshore infrastructure. He warned that the restrictions on principal trading could test existing business models, particularly for groups relying on affiliated market makers.
Timeline for implementation
Feedback on the proposals is due by November 27. ASIC aims to publish final standards and guidance in March 2027. The law is set to take effect on April 8, 2027, and operators will have until October 7, 2027 to apply for the relevant license. Operators can continue functioning while ASIC assesses their applications.
Why this matters for Australia's crypto industry
The consultation marks a key step in Australia's push to bring crypto platforms under formal regulatory oversight. The new framework aims to give operators clearer requirements for licensing, safeguarding customer assets and meeting financial standards, while addressing potential conflicts of interest in platform trading.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.