Australia's ASIC Seeks Input on Capital and Custody Rules for Crypto Firms

The Australian Securities and Investments Commission (ASIC) is seeking public comment on capital, custody and trading standards for crypto platforms as a new licensing law approaches in 2027.

The proposal follows Parliament's passage in April of the Corporations Amendment (Digital Assets Framework) Act. ASIC's consultation is part of an 18-month rollout plan and outlines standards for financial resources, customer-asset protection and licensing.

ASIC is considering three alternative capital models. Under one, platforms without qualifying third-party custody would need net tangible assets of at least $9.7 million or 10% of average revenue, whichever is greater.

The proposal would allow platforms to use offshore custodians. ASIC is seeking feedback on safeguards if a foreign parent or custodian fails, including whether Australian operators should have emergency access to private keys. The draft also calls for quarterly reports on wallets holding customer assets.

Trading standards would restrict platforms from trading on their own account or accepting benefits to favor particular tokens. The package also includes best-execution requirements.

“Our proposed guidance and standards acknowledge the increasing role of digital assets and tokenization, including in traditional parts of the financial system,” ASIC Commissioner Alan Kirkland said.

Comments are due Nov. 27. ASIC aims to publish final standards and guidance in March 2027. The framework takes effect April 8, 2027. Operators have until Oct. 7, 2027, to apply for licenses and may continue operating while ASIC reviews their applications.