Australia proposes new capital and custody rules for crypto exchanges ahead of 2027 deadline

On October 15, 2026, the Australian Securities and Investments Commission issued Consultation Paper 392 proposing new capital, custody, and trading rules for digital asset platforms ahead of an April 8, 2027 licensing framework. Under proposed rules, platforms without third-party custody may face capital requirements up to A$14 million. Existing operators have until October 7, 2027 to apply for licenses.

Consultation process for Consultation Paper 392

• ▪The Australian Securities and Investments Commission published Consultation Paper 392 on October 15, 2026, proposing a licensing and regulatory framework for digital asset platforms and tokenised custody platforms, with industry feedback accepted until November 27, 2026.
• ▪The Australian Securities and Investments Commission plans to review feedback on Consultation Paper 392 and publish final standards and guidance for digital asset platforms in March 2027.

Licensing requirements and compliance timeline

• ▪Australia's new licensing regime for digital asset platforms takes effect on April 8, 2027, with licence applications scheduled to open on the same day.
• ▪Under the Corporations Amendment (Digital Assets Framework) Act 2026, which received Royal Assent on April 8, 2026, covered digital asset platforms must obtain an Australian financial services licence.
• ▪Existing Australian digital asset platform operators have until October 7, 2027, to apply for or vary an Australian financial services licence while continuing operations during regulatory review.

Proposed capital and liquidity requirements

• ▪ASIC proposed that platforms holding over A$100,000 in client money maintain at least A$50,000 in surplus liquid funds, while platform-issued stablecoins are excluded from net tangible asset calculations.
• ▪Under ASIC's proposed rules, platforms meeting specified third-party custody conditions could qualify for a lower base capital requirement of A$200,000 alongside asset or revenue calculations.
• ▪Under one model proposed by ASIC on October 15, 2026, platforms without qualifying third-party custody must hold at least A$14 million in net tangible assets or 10% of average revenue.
• ▪ASIC proposed an alternative capital model with a A$7 million net tangible asset threshold for platform operators that do not hold underlying assets classified as financial products.
• ▪Under a third capital model proposed by ASIC, platforms face activity-based additions including A$500,000 for acting as agent, A$750,000 for running neutral venues, and A$1 million for principal trading.

Proposed custody requirements

• ▪ASIC's proposed custody rules require digital asset platforms to retain wallet structures and address records for seven years and report them quarterly to ASIC without disclosing private keys.
• ▪ASIC's proposed regulatory framework permits Australian platforms to use overseas custodians provided they disclose asset locations and cross-border risks to customers.

Proposed trading and conduct rules

• ▪ASIC's proposed trading rules require digital asset platforms to maintain controls to detect and prevent market manipulation and take reasonable steps to ensure best execution for customer orders.
• ▪Under ASIC's proposed standards, platforms face restrictions on trading for their own accounts as principal and are prohibited from taking benefits to give preferential treatment to specific tokens.

Licensing applications received by ASIC

• ▪The Australian Securities and Investments Commission has received over 140 applications from businesses seeking authorization to provide digital asset-related financial services.
• ▪More than 110 of the licensing applications received by ASIC arrived during a temporary regulatory relief period between October 2025 and September 30, 2026.