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Australia seeks feedback on crypto platform rules ahead of 2027 rollout
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Australia's securities regulator opened public consultation on Thursday on proposed capital, custody and trading requirements for crypto platforms, moving toward implementation of legislation passed in April that expands oversight of the digital asset industry. The Australian Securities and Investments Commission (ASIC) published the proposals in a consultation paper known as CP 392. "Our proposed guidance and standards acknowledge the increasing role of digital assets and tokenization, including in traditional parts of the financial system," said ASIC Commissioner Alan Kirkland.
The consultation follows Parliament's passage of the Corporations Amendment (Digital Assets Framework) Act earlier this year. The proposed guidance is intended to give crypto operators greater clarity on the requirements to obtain a licence, safeguard customer assets and meet financial obligations under the new framework. ASIC has signalled that the rules will take effect ahead of a 2027 rollout.
Capital rules form the centrepiece of the package, with ASIC weighing three alternative models. 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 greater. The regulator is also proposing restrictions on platforms trading for their own account and on accepting benefits to favour particular tokens.
On custody, ASIC proposes allowing offshore arrangements while seeking feedback on whether Australian operators should have emergency access to private keys if an overseas parent or related company fails. Operators would also have to report custody wallet structures and addresses to ASIC quarterly and retain relevant records for seven years.
Thomsons partner Liam Hennessy said the reporting proposal partly reflected the Australian market's reliance on offshore infrastructure, since global competition means digital assets are usually held abroad. He added that the conflict-of-interest restrictions could test existing trading models, noting that an order-matching platform could no longer trade as principal under the proposal.
Industry figures broadly welcomed the consultation. Amy-Rose Goodey, chief executive of the Digital Economy Council of Australia, called the release "an important milestone" and said the shift toward practical implementation was encouraging after years of engagement on reform. OKX Australia CEO Shange Chandra described the standards as "appropriately onerous," predicting they would reward operators that had already invested in compliance, capital and custody while challenging those that had waited.
Goodey said her members would examine the three capital models closely, particularly their proportionality across businesses of different sizes and concessions for third-party custody. "From our perspective, it is not at all contentious that this level of resourcing and care should be taken when clients entrust you with their assets," Chandra said. ASIC's consultation remains open, with finalised standards expected to shape licensing and compliance ahead of the framework's 2027 commencement.
