ASIC proposes tougher custody and trading rules for crypto platforms

Australia’s financial regulator ASIC opened a consultation on Oct. 15 proposing new custody, trading and financial rules for crypto platforms, with feedback due Nov. 27. The rules would set standards for how platforms hold customer assets, handle trades and show they have enough financial resources. ASIC’s consultation announcement says the proposals will help implement Australia’s new digital asset laws.

The standards are proposals, not final requirements. The consultation closes at 5 p.m. AEDT on Nov. 27, and ASIC is seeking feedback on its draft guidance and standards.

What would ASIC require crypto platforms to do?

ASIC proposes rules for separating customer assets from a platform’s own funds, keeping records and allowing customers to withdraw their tokens. Platforms would also need safeguards for the staff and service providers involved in holding those assets.

For trading, the draft covers clear trade execution, price information before and after trades, listing criteria and monitoring for suspicious activity. It also proposes liquidity and net tangible asset requirements, with regular review by a registered company auditor.

Some obligations would depend on the platform’s business model and the products it offers. ASIC says its proposed guidance would also require affected businesses to apply for or vary an Australian financial services licence, provide customer disclosures and set platform rules.

Which businesses could be covered?

The framework covers digital asset platforms that hold tokens for clients and provide related services. It also covers tokenised custody platforms, where underlying assets held for clients are represented as digital tokens.

ASIC says the proposals could also affect existing financial services licensees, market participants, payment providers and other businesses dealing in digital assets. CoinDesk’s report on the consultation says firms already operating would have until Oct. 7, 2027 to apply for a licence and could keep operating while ASIC reviews applications.

When would the new standards take effect?

The new framework is scheduled to begin on April 8, 2027, according to ASIC. The regulator says it has received more than 140 applications from businesses seeking approval to provide digital asset-related financial services.

ASIC’s proposals follow a separate transition period for businesses seeking licences under existing financial services rules. That period ended on Sept. 30, 2026, according to the regulator.

Watch for ASIC’s decision after the consultation closes on Nov. 27, and for final guidance expected in March 2027.

Source material

• consultation announcement — asic.gov.au
• report on the consultation — coindesk.com