Australia proposes new crypto exchange rules for 2027
Australia has proposed new rules for cryptocurrency trading and custody platforms on October 15, 2026, with financial regulator ASIC seeking public feedback by November 27 before the country’s digital asset licensing framework takes effect in April 2027.
- Australia opened consultation on proposed crypto platform rules, with industry feedback due November 27, 2026.
- ASIC proposed three capital models, including an A$14 million threshold for certain platform operators without custody.
- New licensing applications open April 8, 2027, while existing operators receive an October 7 deadline.
- Proposed rules address customer asset custody, trading transparency, conflicts of interest, and financial resource requirements.
- ASIC reported over 140 digital asset licensing applications, including more than 110 during transitional relief.
The Australian Securities and Investments Commission (ASIC) announced the consultation alongside Consultation Paper 392, which outlines planned requirements for customer asset protection, trading practices and financial resources. The regulator expects to publish final guidance in March 2027, giving businesses time to prepare for the new licensing requirements.
Australia crypto regulations will require new licenses
Australia’s upcoming rules will bring more cryptocurrency businesses under the country’s existing financial services licensing framework.
The Corporations Amendment (Digital Assets Framework) Act 2026 creates two regulated categories: digital asset platforms and tokenized custody platforms. Digital asset platforms hold digital tokens for customers and provide related services, while tokenized custody platforms use digital tokens to record customers’ rights to underlying assets.
Businesses covered by the legislation will need an Australian financial services license, commonly called an AFS license, or an appropriate change to an existing license. Exemptions may apply to certain business arrangements.
The legislation passed Parliament on April 1 and received Royal Assent on April 8, 2026. According to ASIC’s latest consultation paper, the new framework will commence on April 8, 2027.
Existing operators will have until October 7, 2027, to apply for the required authorization or request changes to their current licenses. Businesses that submit applications within the transition period can continue operating while ASIC considers their applications, subject to the applicable conditions.
ASIC intends to publish guidance explaining which businesses need authorization and how the rules interact with existing financial services legislation.
Commissioner Alan Kirkland described the regulator’s approach as “same activity, same risk, same regulatory outcome.”
He said the proposals recognize the growing use of digital assets and tokenization in traditional finance, while maintaining customer protection standards.
The regulator has already received more than 140 applications related to digital asset financial services. More than 110 arrived during the temporary regulatory relief period between October 2025 and September 30, 2026.
The earlier Australian crypto licensing deadline in September concerned existing financial services obligations, which remain separate from the new authorization categories starting in 2027.
ASIC proposes capital requirements of up to A$14 million
One major part of the consultation concerns how much money cryptocurrency businesses should maintain to cover their financial obligations.
ASIC has presented three alternative models for net tangible asset requirements. These determine the financial resources businesses must maintain, depending on their custody arrangements, revenue and trading activities.
Under the first model, a platform without qualifying third-party custody arrangements would need at least A$14 million in net tangible assets or 10% of its average revenue, whichever is higher.
A business meeting the required third-party custody conditions could qualify for a lower threshold. Its calculation would consider A$200,000, a percentage of assets held and 10% of average revenue, with the applicable requirement determined by the proposed model.
The second model introduces a separate A$7 million threshold for operators that do not hold underlying assets classified as financial products, provided they do not qualify for the third-party custody concession.
Other operators would generally remain subject to the A$14 million threshold or the revenue-based requirement.
ASIC’s third model proposes a starting requirement based on the largest of A$2 million, a percentage of underlying assets or 10% of revenue. Further amounts would apply depending on the platform’s activities.
Those additions include A$500,000 for businesses acting as agents, A$750,000 for operators running neutral trading venues and A$1 million for platforms trading directly with customers as principals.
The regulator is seeking feedback on whether these amounts are appropriate and how they would affect businesses of different sizes.
The proposed standards cover cash-flow projections and auditing requirements, including measures intended to help firms meet their operating expenses.
ASIC has not selected a final capital model. The consultation document states that the requirements may change after feedback and further regulatory work.
Crypto exchanges could face stricter trading and custody rules
ASIC’s proposed standards would require covered cryptocurrency platforms to strengthen how they store customer assets and process transactions.
The custody proposals address recordkeeping, control of customer assets and oversight of external custodians. Businesses would need to maintain appropriate records showing how client assets are held and managed.
The regulator is not proposing a blanket requirement for all digital assets to remain in Australia. Companies using overseas custody arrangements would face requirements concerning disclosure and management of the associated risks.
Platforms would need to maintain records of relevant digital wallets and blockchain addresses. Proposed reporting arrangements would provide ASIC with information needed to supervise custody activities without requiring platforms to disclose private keys or recovery phrases.
For trading, ASIC wants operators to make clearer information available about customer orders and completed transactions.
The proposed standards would require controls addressing market misconduct, including manipulation and unfair trading practices.
ASIC is considering restrictions on platforms that trade against customers using their own accounts, while recognizing that certain business models involve a platform acting as the counterparty.
The consultation covers conflicts of interest, including payments or benefits that could influence how platforms admit digital tokens for trading.
Businesses executing orders for customers would generally need to take reasonable steps to obtain an appropriate trading outcome under the proposed standards.
These requirements form part of ASIC’s effort to regulate different exchange structures, including platforms that match buyers and sellers and businesses that directly provide liquidity.
An earlier Australian High Court ruling involving Block Earner established that the company’s former fixed-yield cryptocurrency product required financial services authorization under existing law.
The June 2026 ruling concerned Block Earner’s specific investment product, not every cryptocurrency exchange or digital token.
Stablecoin rules and November feedback deadline
ASIC’s consultation extends to stablecoins that financial services businesses may use when calculating their available financial resources.
The regulator proposes excluding certain stablecoins issued by a company or its related entities from qualifying for net tangible asset requirements.
Stablecoins held through independent third-party arrangements could still qualify, depending on their structure and the applicable financial requirements.
The consultation examines how existing rules apply to wrapped tokens, custodial staking and public blockchain infrastructure. ASIC plans to update its digital asset guidance to explain how certain exemptions operate.
The regulator will accept written submissions until 5 p.m. Australian Eastern Daylight Time on November 27, 2026, through [email protected].
ASIC expects to review the submissions between November 2026 and March 2027. It may conduct further consultations before finalizing the standards.
The regulator has scheduled publication of its final instruments and guidance for March 2027, followed by the framework’s commencement on April 8.
Existing businesses covered by the new rules must submit their license applications or requested variations by October 7, 2027.
ASIC is considering publishing a list of businesses that apply before the transition deadline, allowing customers and industry participants to identify operators eligible to continue trading while their applications are assessed.