ASIC opens crypto platform licensing consultation

TLDR

Australia's financial regulator ASIC has begun a public consultation on detailed licensing rules for crypto trading and tokenised custody platforms.

1. ASICs draft rules under the new Digital Assets Framework Act set stricter capital, custody, trading and reporting requirements for crypto platforms and tokenised custody providers.
2. The framework will push Australian and offshore exchanges toward full financial-services licensing, higher compliance costs and tighter controls on conflicts of interest and customer-asset protection.
3. Feedback is due 27 Nov 2026, with final standards expected in March 2027 before the regime starts on 8 Apr 2027, so industry responses could still shape key details.

Deep Dive

1. What ASIC Is Proposing

ASICs consultation is based on Consultation Paper 392, which implements the Corporations Amendment (Digital Assets Framework) Act 2026 and covers digital asset platforms and tokenised custody platforms. The paper outlines capital models, custody standards, trading rules and quarterly reporting of wallets holding customer assets, giving operators a clearer path to licensing under the Australian financial services regime. One headline option would require platforms without qualifying third party custody to hold at least A$14 million in net tangible assets or 10 percent of average revenue, alongside strict record keeping and disclosure requirements for wallet structures and blockchain addresses.

2. Impact On Platforms And Users

Covered businesses will need an Australian financial services license or a variation and will have to meet standards around customer disclosures, asset segregation, trading transparency, settlement processes and financial resources. ASIC proposes restrictions on platforms trading for their own account or accepting benefits to favor specific tokens, aiming to reduce conflicts of interest and abusive market models, while allowing offshore custody subject to safeguards such as emergency access to keys if an overseas custodian fails. Certain issuer or affiliate stablecoins may be excluded from capital calculations, which could reshape how platforms structure treasury and liquidity, and the higher capital bar may favor larger, well capitalised operators over smaller exchanges.

3. Timeline And What To Watch

Written submissions are open until 5 p.m. AEDT on 27 Nov 2026, and ASIC aims to finalise guidance and standards in March 2027 before the law takes effect on 8 Apr 2027. New license applications open on that date, while existing operators are expected to apply or vary licences by 7 Oct 2027 and can generally keep operating during assessment if they meet transition conditions. Over the next year, watch for how major exchanges and custodians publicly respond to the capital and trading rules, whether ASIC adjusts thresholds after feedback, and whether a list of timely applicants is published, which would signal which platforms are committing to the new regime.

Conclusion

ASICs consultation marks a decisive move to pull crypto platforms into a full financial-services licensing framework, with substantial capital, custody and conduct obligations. For users, the regime could improve clarity and protection around how assets are held and trades are executed, but it may also drive consolidation and change which platforms can operate in Australia by 2027.