Australia's ASIC proposes tougher rules for crypto exchanges ahead of 2027 deadline
Regulator proposes strict custody and trading rules for crypto platforms
The Australian Securities and Investments Commission (ASIC) has released consultation paper CP-392, outlining proposed regulatory technical standards that would govern how digital asset service providers manage client funds, execute trades, and maintain market integrity.
The proposals establish requirements for the safeguarding of customer digital assets, execution of client transactions, management of conflicts of interest, and handling of complaints.
Under the proposed framework, entities operating as digital asset exchanges or custodians in Australia would need to comply with these standards and hold an Australian Financial Services Licence.
Key details of the proposal
- Consultation Paper CP-392 is now open for public comment
- The consultation period closes on November 27, 2026
- ASIC will issue final guidance and standards by March 2027
- Regulatory technical standards take effect on April 8, 2027
Transition period for existing operators
Entities already providing regulated digital asset services in Australia may continue operating during the transition period before the April 8, 2027 commencement date.
Existing licensees must apply to amend their AFSL to include authorisation for digital asset services by October 7, 2027.
Regulatory approach explained
The proposed rules aim to align Australia's crypto regulatory framework with international standards adopted by other jurisdictions, including the European Union's Markets in Crypto-Assets (MiCA) regulation.
The consultation builds on the Digital Assets Bill, which passed through both houses of the Australian Parliament in April 2026.
Why this matters for Australian crypto users
The proposed rules would impose new compliance obligations on crypto businesses operating in Australia, including requirements around how customer funds are held and how trading activities are conducted.
ASIC stated in the consultation release that the reforms are designed to deliver stronger consumer protections and enhance market integrity in Australia's digital asset sector.
The move brings Australian crypto regulation closer to approaches used in other major markets, though the specific impact on existing platforms will depend on how ASIC finalises the standards following the consultation process.
Source
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.