TLDR
Australias securities regulator ASIC has launched a formal consultation on licensing and conduct rules for crypto trading and custody platforms ahead of a 2027 regime.
- The framework will bring digital asset platforms and tokenised custody platforms under Australias existing financial services license system with stricter capital, custody and trading rules.
- Proposals include capital floors up to A$14 million, tighter controls on exchanges trading against customers, and stronger protection and reporting for client assets.
- Feedback runs to 27 Nov 2026, with rules due to start 8 Apr 2027, so platforms and users now have a clear timeline to prepare and respond.
Deep Dive
1. New Licensing Framework
Parliament has already passed the Corporations Amendment (Digital Assets Framework) Act 2026, which defines regulated digital asset platforms and tokenised custody platforms that will need an Australian financial services (AFS) license or variation to operate in crypto. Covered firms include exchanges that hold customers tokens and custody providers that tokenise rights to underlying assets under the new law.
ASICs consultation, set out in Consultation Paper 392, proposes standards for customer disclosures, asset segregation and custody, trading and settlement practices, and net tangible asset requirements for licensees, aligning crypto businesses more closely with traditional financial firms under the existing regime.
2. Impact On Platforms And Users
ASIC is testing three alternative capital models, including one that would require platforms without qualifying independent custody to hold at least A$14 million or 10% of average revenue, whichever is greater, as net tangible assets. Proposed trading rules would restrict platforms from placing their own trades where they match customer orders, require controls against manipulation and conflicts of interest, and mandate best execution using adequate external liquidity.
Customer asset protections would tighten through stricter custody standards, quarterly reporting of wallets holding client assets, and clearer rules for offshore custody and emergency access if an overseas parent or custodian fails.
Larger, well-capitalized and compliance-focused venues are likely to benefit, while smaller exchanges may face pressure to upgrade, merge or exit, but retail users should gain clearer safeguards and disclosures.
3. Timeline And What To Watch
Consultation opened on 15 Oct 2026 and runs until 27 Nov 2026, with ASIC aiming to finalize standards and guidance by March 2027. The new framework is scheduled to commence on 8 Apr 2027, and existing operators will generally have until 7 Oct 2027 to apply for the required licenses or variations while continuing to operate during review if they meet conditions.
For crypto users and businesses, the key next steps are how ASIC refines capital thresholds, custody concessions and trading restrictions in response to industry feedback, and whether some platforms preemptively change their business models or exit the Australian market.
Conclusion
Australia is moving to treat major crypto platforms more like traditional financial services, with licensing, capital and conduct rules designed to protect customers and financial stability. The consultation phase gives exchanges, custodians and users a window to shape the details and to position ahead of a regime that could both reduce platform risk and reshape which venues remain competitive for Australian crypto activity.
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