BREAKING: Australia Unveils Tough New Rules for Crypto Exchanges — A$14 Million Capital Test and Strict Custody Checks Proposed
Australia's market regulator ASIC opened a public consultation on Thursday on new capital, custody and trading rules for crypto platforms. The plan would bring digital asset platforms and tokenised custody platforms firmly inside the country's financial services licensing system.
ASIC is weighing three different capital models. Under one option, a platform that does not use a qualifying third-party custodian would need to hold at least A$14 million (about $9.7 million) in net tangible assets, or 10% of its average revenue, whichever is greater — a high bar that smaller exchanges may struggle to meet.
Custody and trading conduct are also in focus. Platforms could still use offshore custodians, but ASIC wants feedback on safeguards if a foreign parent or custodian fails, including whether Australian operators should have emergency access to private keys. The draft also calls for quarterly reporting on wallets holding customer assets, limits on platforms trading for their own account, a ban on accepting benefits to favour particular tokens, and best-execution requirements.
The timetable is long but clear. Feedback is due on November 27, final standards are aimed for March 2027, the new law starts on April 8, 2027, and operators will have until October 7, 2027 to apply for the needed licence, and can keep operating while ASIC reviews their application. The consultation is part of an 18-month roadmap following the Digital Assets Framework Act passed in April.
For traders, the message is two-sided. Industry voices quoted in reports welcomed clearer rules and said well-funded operators that already invested in compliance, capital and custody will be rewarded, while under-prepared firms could be pushed into mergers or out of the market. That could mean fewer, stronger Australian exchanges — and better protection for customer funds — but also less choice if small platforms cannot afford the new standards.
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: Cointelegraph, TokenPost, Traders Union, Finance Magnates