Australia Proposes New Crypto Platform Rules Ahead of April 2027 Implementation
Australia’s securities regulator has opened a public consultation on proposed rules governing cryptocurrency platforms, including capital requirements, customer asset custody and trading practices, as the country prepares to introduce a new digital asset regulatory framework in 2027.
The Australian Securities and Investments Commission (ASIC) launched the consultation on Thursday, seeking industry feedback on standards designed to clarify licensing obligations and strengthen protections for customer assets. The proposals follow Parliament’s passage of the Corporations Amendment (Digital Assets Framework) Act in April.
The proposed measures cover three alternative capital models, restrictions on platforms trading for their own accounts, and quarterly reporting on wallets holding customer assets. ASIC is also considering whether platforms should be permitted to use overseas custody providers and what safeguards would be necessary if a foreign parent company or related custodian failed.
ASIC Proposes Three Capital Models for Crypto Platforms
One of the regulator’s proposals would require operators without qualifying third-party custody arrangements to maintain at least 14 million Australian dollars, equivalent to $9.7 million, in net tangible assets or 10% of their average revenue, whichever amount is higher.
The consultation examines three potential capital models, with the final requirements expected to shape how cryptocurrency businesses finance their operations and manage customer assets.
ASIC Commissioner Alan Kirkland said the proposed guidance recognizes the expanding role of digital assets and tokenization, including their growing presence in traditional areas of the financial system.
Amy-Rose Goodey, CEO of the Digital Economy Council of Australia, told Cointelegraph that the release of ASIC consultation paper CP 392 marked an important step for the country’s digital asset sector. She said the industry had spent years engaging with regulators on reform and welcomed the shift toward practical implementation.
Goodey added that her organization would work with its members to assess the three capital models, particularly whether the requirements are proportionate for businesses of different sizes and what concessions might be available to firms using third-party custody.
Offshore Custody and Trading Conflicts Under Review
ASIC’s proposals would allow cryptocurrency platforms to use overseas custody arrangements rather than requiring customer assets to be held domestically. However, the regulator is seeking feedback on safeguards, including whether Australian operators should have emergency access to private keys if an overseas parent company or custodian fails.
Goodey described the decision not to mandate domestic custody as significant, saying it recognizes the global nature of digital asset markets.
The regulator is also considering restrictions on platforms trading for their own accounts, affiliated liquidity arrangements and accepting benefits in exchange for favoring particular tokens. These measures are intended to address potential conflicts of interest and reinforce expectations around best execution.
Goodey said the proposed restrictions could have important implications for how Australian cryptocurrency exchanges operate and obtain liquidity, making further industry scrutiny necessary.
Shange Chandra, CEO of OKX Australia, welcomed the proposals and said the requirements could encourage consolidation across the industry. He argued that demanding standards would favor operators that had already invested in compliance, capital and custody arrangements, while putting pressure on businesses that had delayed those investments.
Chandra also said the level of resources and care proposed by ASIC was appropriate when customers entrust platforms with their assets. He called for a streamlined licensing process for established companies with a proven compliance record.
Crypto Licensing Framework Targets 2027 Rollout
The consultation forms part of ASIC’s 18-month implementation roadmap following the passage of the Digital Assets Framework Act in April. The guidance is intended to give operators greater clarity about licensing, financial requirements and their responsibilities for protecting customer assets.
Industry participants have until November 27 to submit feedback. ASIC aims to publish its final standards and guidance in March 2027.
The legislation is scheduled to take effect on April 8, 2027. Cryptocurrency operators will then have until October 7, 2027, to apply for the relevant license. Businesses will be permitted to continue operating while ASIC assesses their applications.
data source: cointelegraph.com
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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