Australia’s securities regulator has started a public consultation on a suite of requirements that will govern crypto-exchange licences ahead of a legislative rollout in 2027.
Consultation overview
The Australian Securities & Investments Commission (ASIC) released Consultation Paper CP 392, outlining proposed capital, custody and trading obligations for digital-asset platforms. The paper follows the Corporations Amendment (Digital Assets Framework) Act passed earlier this year and seeks stakeholder input until 27 November.
Capital models and custody
ASIC is evaluating three capital structures. One option would obligate firms that do not use a qualifying third-party custodian to maintain at least A$14 million in net tangible assets, or 10% of average revenue, whichever is higher. The regulator also intends to allow custodial services to be hosted overseas, but it is asking for comments on safeguards should an offshore parent fail, including whether Australian operators should retain emergency access to private keys.
Trading restrictions and reporting
The proposals aim to curb conflicts of interest by limiting a platform’s ability to trade on its own account or to favour specific tokens. Certain exceptions apply for specific market-making arrangements. Additionally, platforms would need to submit quarterly reports detailing custody wallet structures and addresses, and retain related records for seven years.
Implementation timeline
ASIC’s 18-month roadmap targets the publication of final standards and guidance in March 2027. The Digital Assets Framework Act will become effective on 8 April 2027, after which firms have until 7 October 2027 to apply for a licence while ASIC reviews applications.
Industry response
Stakeholders have welcomed the move toward clearer licensing criteria. The Digital Economy Council of Australia described the consultation as a “milestone” after years of regulatory dialogue. OKX Australia’s chief executive noted that the standards would reward firms that have already invested in compliance, while challenging those that have delayed such investments.
Why it matters
The forthcoming rules will shape the operating environment for crypto platforms in Australia, potentially driving consolidation and encouraging higher standards of capital adequacy and asset protection. By formalising licensing requirements, ASIC aims to align the domestic market with international best practices and mitigate systemic risks associated with digital-asset trading.
