Australia seeks feedback on crypto platform rules before 2027 rollout

The consultations come as Parliament aims to pass the digital asset law in April, while the Australian Securities and Investments Commission now proposes capital, custody and trading standards for crypto platforms.

The consultation follows the passage of the Digital Assets Act by Parliament in April, and Australia's securities regulator is now proposing capital, custody and trading standards for crypto platforms.

Australia's securities regulator launched a consultation on Thursday on proposed capital, holding and trading requirements for crypto platforms as it prepares to implement legislation passed in April that expands oversight of the industry.

These offers include three alternative capital models, restrictions on trading platforms for own account and quarterly reporting of wallets with client assets. ASIC is also proposing to allow overseas custody when seeking feedback on safeguards in the event of the failure of a parent company or associated company overseas.

ASIC Commissioner Alan Kirkland said: "Our proposed guidance and standards acknowledge the growing role of digital assets and tokenisation, including in traditional parts of the financial system.

The proposed guidelines and standards will give crypto operators more clarity on licensing requirements, protecting client assets and meeting financial requirements under the new framework. The consultation follows the passage of the Companies (Digital Assets Framework) Amendment Act by Parliament earlier this year.

"The publication of CP 392 by ASIC is an important milestone for Australia's digital asset industry. It is encouraging to see the shift in focus towards practical implementation," Amy Rose Goody, CEO of the Digital Economy Council of Australia, told Cointelegraph.

OKX Australia CEO Shange Chandra also welcomed the proposals, saying they could lead to industry consolidation.

"These standards are appropriately tough," he told Cointelegraph. “They reward operators who have already invested in compliance, capital and maintenance. "They will challenge operators who are waiting for investment."

ASIC is considering three alternative capital models, including one that would require operators without third-party custody requirements to have at least A$14 million ($9.7 million) in tangible net assets or 10 percent of average revenue, whichever is greater.

"We will be working closely with our members to examine the three proposed capital models in considerable detail, particularly their suitability among businesses of different sizes and the concessions available for third-party custody," Goody said.

"From our perspective, when clients entrust their assets to you, that level of resources and care should be discussed," Chandra said.

The regulator has also proposed allowing overseas custody, while seeking feedback on whether Australian operators should have emergency access to private keys if an overseas parent or guardian fails.

"The proposal not to impose domestic custody is also significant given the global nature of digital asset markets," Gowdy said.

ASIC also proposes restrictions on platforms that trade for their own account and accept benefits in favor of certain tokens, targeting potential conflicts of interest.

"The proposed restrictions on principal trading, dependent liquidity arrangements and best execution requirements will require careful consideration given their implications for how Australian exchanges operate and access liquidity," Goody said.

Chandra also called for a streamlined licensing process for established companies with a track record of compliance.

The consultation is part of ASIC's 18-month implementation roadmap, which was published following the adoption of the Digital Assets Framework Act in April.

Feedback is due on 27 November, with ASIC aiming to publish the final standards and guidelines in March 2027. The rule is due to come into effect on 8 April 2027 and operators have until 7 October 2027 to apply for the relevant license and can operate while ASIC assesses their applications.