ASIC Seeks Public Consultation on Capital, Custody, and Trading Rules for Crypto Platforms, Set to Launch in 2027

The Australian Securities and Investments Commission (ASIC) has initiated a public consultation proposing capital, custody, and trading requirements for crypto platforms, aimed at expanding industry regulation in line with the digital asset legislation passed in April. The proposal includes three capital models, restrictions on proprietary trading by platforms, and quarterly reporting of wallets holding customer assets. ASIC intends to allow offshore custody and is seeking feedback on safeguards in the event of the failure of overseas parent or affiliated companies. One model requires platforms that do not use qualified third-party custody to hold at least AUD 14 million in net tangible assets or 10% of average revenue, whichever is higher. The feedback deadline is November 27, and ASIC plans to release final standards and guidelines in March 2027. The related legislation will come into effect on April 8, 2027, and operators must apply for licenses by October 7 of the same year, with the ability to continue operations during the ASIC review period.

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