Australia seeks feedback on crypto platform rules ahead of 2027 rollout

ASIC is consulting on rules for crypto platforms covering capital, customer-asset custody, trading conflicts and reporting. The proposals clarify licensing requirements and strengthen protections as Australia expands oversight of digital assets.

For example, a platform without approved outside custody could need A$14 million in net tangible assets, or 10% of average revenue, whichever is higher. ASIC would also require quarterly wallet reporting and seven-year records. It is considering overseas custody, with safeguards if a related company collapses. Platforms could face limits on trading for themselves or favoring particular tokens.

The consultation is open now, with feedback due November 27. ASIC aims to publish final guidance in March 2027. The law takes effect April 8, 2027. Operators can apply by October 7, 2027, and continue operating while ASIC assesses applications.

A crypto platform is a business that helps customers buy, sell, trade, or hold digital assets. Under Australia’s new framework, operators providing these services may need a license. Licensing supports lawful operation and customer-asset protection. The article does not list every covered service.

For example, a platform might match customer orders through an order book or matched-principal trading. ASIC proposes banning such a platform from trading for itself. Related companies also could not trade as principals through it. Platforms holding customer assets would face custody, wallet-reporting, and record-keeping duties.

ASIC is consulting on capital, custody, and trading standards before finalizing guidance in March 2027. The law takes effect April 8, 2027. Operators can apply by October 7 while continuing during assessment. The final requirements will determine how each platform is affected.

Australia’s proposed rules could require a crypto operator to hold substantial capital before serving customers. The amount depends on its custody setup and the regulator’s final choice among three capital models.

For example, an operator without qualifying third-party custody would need at least A$14 million in net tangible assets. It could instead need 10% of average revenue, whichever figure is higher. That financial buffer could strengthen customer protection, while favoring larger, well-funded platforms.

Platforms would report their custody wallet structures and addresses to ASIC every quarter, retaining relevant records for seven years. Feedback closes November 27, and ASIC aims to finalize standards in March 2027. Because final rules are pending, businesses should compare models and prepare reporting systems before rules take effect in 2027.

These standards would make crypto platforms prove they have enough money, secure customer assets, and avoid harmful conflicts. That could protect customers, but smaller or less-prepared businesses might face higher costs, consolidation, or exit the market.

One proposed model requires platforms without qualifying outside custody to hold A$14 million or 10% of average revenue. They would use whichever amount is higher. Offshore custody could remain available, but ASIC is considering emergency key access if a foreign parent collapses.

ASIC received feedback until November 27 and plans final standards in March 2027. The law starts April 8, 2027; businesses can operate while applications are assessed, but must apply by October 7. Customers may gain stronger safeguards, while platform choices could narrow as compliance rewards larger, established operators.

Yes. ASIC’s proposed rules would let Australian crypto platforms keep customer assets with offshore custodians. This matters because many digital assets already sit overseas, but customers need protection if that arrangement breaks down.

For example, ASIC is considering whether Australian operators should have emergency access to private keys if an overseas parent or related company fails. Platforms would also report custody wallet structures and addresses to ASIC every quarter, while keeping relevant records for seven years. These measures could show where assets are held and support recovery, but approval is not guaranteed.

The proposal is still under consultation, not final policy. Feedback closes November 27, and final standards are planned for March 2027. Platforms can apply until October 7, 2027, and operate while ASIC assesses applications.

Parliament passed the Digital Assets Framework Act in April, creating the legal basis for crypto-platform oversight. ASIC is translating that law into practical standards for licensing, capital, custody and trading. Operators must meet those standards, while customers are the people whose assets and interests the rules aim to protect.

One proposed model requires some operators to hold A$14 million, or 10% of average revenue, whichever is higher. Platforms would report wallet structures and addresses quarterly, retain records for seven years, and avoid trading for themselves. ASIC is also seeking safeguards if an overseas custodian or related company fails, protecting customers’ access to assets.

Feedback is due November 27, with final standards targeted for March 2027. The law starts April 8, 2027, and operators have until October 7 to apply. They may operate while ASIC assesses applications, creating a transition that could reward prepared operators and encourage consolidation.

Crypto custody is the way a platform stores and protects the private keys linked to customer assets. Private keys are secret credentials that authorize blockchain transactions; whoever controls them can move the assets. Custody therefore affects access if a platform fails.

Australia’s proposal offers a concrete example. ASIC would allow offshore custody but is asking whether Australian operators need emergency access to keys if an overseas parent fails. Without that safeguard, customers could face frozen assets, while quarterly wallet reporting improves oversight.

Capital rules give platforms reserves to keep operating and absorb problems before customers bear losses. ASIC is considering A$14 million or 10% of average revenue, whichever is greater, for some operators. Conflict rules would restrict platforms trading for themselves or favoring tokens, reducing incentives to put company profits ahead of customers. Feedback is due November 27, with final standards targeted for March 2027.