Australia Seeks Crypto Rules Input Before 2027 Launch

Australia’s securities regulator has opened public consultation on proposed capital, custody and trading requirements for crypto platforms. The consultation is part of preparations for legislation that expands oversight of the digital asset industry and takes effect April 8, 2027.

The Australian Securities and Investments Commission is accepting feedback until Nov. 27 and plans to publish final guidance and standards in March 2027. The proposals cover licensing, customer-asset protection, financial requirements and quarterly reporting of wallets that hold customer assets.

The consultation follows Parliament’s passage of the Corporations Amendment (Digital Assets Framework) Act in April. Crypto operators will have until Oct. 7, 2027, to apply for the relevant license and may continue operating while ASIC reviews their applications.

ASIC is considering three capital models for crypto platforms. One would require operators without qualifying third-party custody arrangements to hold at least 14 million Australian dollars ($9.7 million) in net tangible assets or 10% of average revenue, whichever is higher.

The regulator is proposing to allow offshore custody. It is seeking views on safeguards that could give Australian operators emergency access to private keys if an overseas parent company or related custodian fails.

Other proposals would restrict platforms from trading for their own accounts or accepting benefits that could encourage them to favor particular tokens. ASIC is also seeking feedback on affiliated liquidity arrangements and best-execution requirements, which concern conflicts of interest and the handling of customer orders.

“Our proposed guidance and standards acknowledge the increasing role of digital assets and tokenization, including in traditional parts of the financial system,” ASIC Commissioner Alan Kirkland said. He added that the proposals would clarify licensing, customer-asset protection and financial requirements.

Amy-Rose Goodey, chief executive of the Digital Economy Council of Australia, described the consultation as an important stage in implementing the new framework. The industry group will examine whether the three capital models are proportionate for businesses of different sizes, including the concessions tied to third-party custody.

Goodey also noted that the proposal does not require domestic custody, reflecting the international structure of digital asset markets. She said the rules on principal trading, affiliated liquidity arrangements and best execution require further consideration because they affect how Australian exchanges operate and obtain liquidity.

OKX Australia CEO Shange Chandra described the proposed standards as “appropriately onerous.” He said they would favor operators that had already invested in compliance, capital and custody, and urged ASIC to create a faster licensing process for established companies with a record of compliance.