Australia's securities regulator opened consultation on Thursday on proposed capital, custody, and trading requirements for crypto platforms as it prepares to implement legislation passed in April that expands oversight of the industry.
The proposals include three alternative capital models, restrictions on platforms trading for their own account, and quarterly reporting of wallets holding customer assets. ASIC also proposes allowing offshore custody while seeking feedback on safeguards if an overseas parent or related company fails.
Capital and Custody Framework
ASIC is weighing three alternative capital models, including one requiring operators without qualifying third-party custody arrangements to hold at least 14 million Australian dollars in net tangible assets or 10% of average revenue, whichever is greater.
The regulator has also proposed allowing offshore custody while seeking feedback on whether Australian operators should have emergency access to private keys if the overseas parent or custodian fails. This approach recognizes the global nature of digital asset markets.
Trading and Conflict of Interest Safeguards
ASIC proposes restrictions on platforms trading for their own account and accepting benefits to favor particular tokens, targeting potential conflicts of interest. The regulator also proposes requirements for best execution and restrictions on affiliated liquidity arrangements.
Implementation Timeline
The consultation forms part of ASIC's 18-month implementation roadmap, published after the Digital Assets Framework Act was passed in April. Feedback is due November 27, with ASIC aiming to publish final standards and guidance in March 2027. The law is set to take effect on April 8, 2027, and operators will have until October 7, 2027, to apply for the relevant license. Operators can continue operating while ASIC assesses their applications.
