Australia Opens Consultation on Crypto Platform Capital, Custody and Trading Rules

Australia’s securities regulator has opened public consultation on new requirements for crypto platforms, setting the stage for a 2027 rollout of the digital asset law passed in April.

ASIC Crypto Platform Proposals

The regulator is weighing three alternative capital models, including one that would require operators without qualifying third party custody to hold at least 14 million Australian dollars ($9.7 million) in net tangible assets or 10% of average revenue, whichever is greater. It also proposes allowing offshore custody, while asking whether local operators should get emergency access to private keys if an overseas parent or related company fails. Operators would report custody wallet structures and addresses quarterly and keep records for seven years.

Trading Limits and Conflict of Interest Rules

Platforms would face limits on trading for their own account and on accepting benefits to favor particular tokens. Thomsons partner Liam Hennessy said an order matching platform could not trade as principal on its own venue, and related companies could not do so through it, with some model specific exceptions. He advised groups relying on an affiliated market maker to review this first.

Industry Reaction to ASIC CP 392

Digital Economy Council of Australia CEO Amy-Rose Goodey called the release an important milestone and welcomed the shift toward practical implementation. OKX Australia CEO Shange Chandra said the standards are appropriately onerous and could drive consolidation by rewarding operators that invested early in compliance.

Feedback is due Nov. 27, with final standards and guidance expected in March 2027. The law takes effect on April 8, 2027, and operators have until Oct. 7, 2027, to apply for a license, and can keep operating while applications are assessed.