The Australian Securities and Investments Commission (ASIC) has launched a consultation on new regulatory standards for cryptocurrency platforms. These rules cover capital requirements, asset custody, and trading practices, following the passage of the Corporations Amendment (Digital Assets Framework) Act in April.
Proposed capital models include a requirement for operators without third-party custody to hold at least AUD 14 million in net tangible assets or 10% of their average revenue. ASIC is also considering restrictions on proprietary trading and conflicts of interest, alongside requirements for quarterly reporting on customer asset wallets.
The regulator is exploring the possibility of allowing offshore custody, provided there are safeguards for emergency access to private keys. Industry representatives, including the Digital Economy Council of Australia and OKX Australia, have noted that these standards may encourage market consolidation.
The consultation period concludes on November 27. ASIC plans to release final guidance in March 2027. The new legislation is scheduled to take effect on April 8, 2027, with a deadline for license applications set for October 7, 2027.
