Australia’s financial regulator has proposed new rules for cryptocurrency trading and custody platforms, with public submissions open until 27 November 2026 before a new digital asset licensing framework begins on 8 April 2027.
The Australian Securities and Investments Commission (ASIC) published Consultation Paper 392 on 15 October, covering customer asset protection, trading conduct, conflicts of interest and financial resources. It expects to issue final guidance in March 2027.
The Corporations Amendment (Digital Assets Framework) Act 2026 creates two regulated categories: digital asset platforms, which hold digital tokens for customers and provide related services, and tokenized custody platforms, which use tokens to record rights to underlying assets.
Businesses covered by the legislation will require an Australian financial services licence, known as an AFS licence, or an appropriate variation to an existing licence. Some arrangements may be exempt.
The legislation passed Parliament on 1 April and received Royal Assent on 8 April 2026. New licence applications will open on 8 April 2027, while existing operators must apply for authorization or request a licence variation by 7 October 2027. Firms that apply during the transition period will be able to continue operating while ASIC assesses their applications, subject to applicable conditions.
ASIC has received more than 140 applications relating to digital asset financial services, including more than 110 during temporary regulatory relief between October 2025 and 30 September 2026. That earlier September deadline related to existing financial services obligations and is separate from the new authorization categories.
Commissioner Alan Kirkland said ASIC’s approach was “same activity, same risk, same regulatory outcome”. He added that the proposals reflected the expanding use of digital assets and tokenization in traditional finance while preserving customer protection standards.
Capital requirements under consultation
ASIC has proposed three possible models for net tangible asset requirements, with the final approach yet to be chosen.
Under one model, a platform without qualifying third-party custody would need at least A$14 million or 10% of average revenue, whichever was higher. Eligible firms using third-party custody could face a calculation involving A$200,000, a percentage of assets held and 10% of average revenue.
A second model would set a separate A$7 million threshold for operators that do not hold underlying assets classified as financial products and do not qualify for the custody concession. Other firms would generally remain subject to A$14 million or the revenue-based requirement.
The third model would begin with the highest of A$2 million, a percentage of underlying assets or 10% of revenue, with additional requirements of A$500,000 for agents, A$750,000 for neutral trading venues and A$1 million for platforms trading directly with customers as principals.
The proposals also cover cash-flow forecasts and auditing.
ASIC wants platforms to improve records of customer assets, digital wallets and blockchain addresses, while overseas custody would require disclosure and management of associated risks. The regulator would not require private keys or recovery phrases.
Trading rules would address market manipulation, unfair practices, conflicts of interest and platforms trading against customers. Businesses executing customer orders would generally need to take reasonable steps to secure an appropriate outcome.
The consultation also considers stablecoins, wrapped tokens, custodial staking and public blockchain infrastructure. Certain stablecoins issued by a company or related entity may not count towards capital requirements, while independently held stablecoins could qualify.
Written submissions close at 5pm Australian Eastern Daylight Time on 27 November 2026 at [email protected]. ASIC will review responses through March 2027 and may consult further before publishing final instruments and guidance. It is also considering publishing a list of firms that apply before the transition deadline.
An Australian High Court ruling in June 2026 found that Block Earner’s former fixed-yield cryptocurrency product required authorization under existing law. The decision applied to that specific investment product, not to every cryptocurrency exchange or digital token.
