ASIC Opens Consultation on Capital, Custody and Trading Rules for Crypto Platforms, Targets April 2027 Rollout

Published October 15, 2026, 10:40 UTC. Based on ASIC's announcement of Consultation Paper 392 and reporting by CoinDesk, crypto.news, TokenPost, CoinStats and cryptotimes.io.

Australia's financial regulator opened a public consultation on October 15, 2026 on proposed capital, custody and trading standards for cryptocurrency platforms and digital asset custodians, setting out how firms must protect customer assets, execute trades and meet financial resource requirements under licensing laws that take effect in 2027. The Australian Securities and Investments Commission (ASIC) is seeking industry feedback by November 27, 2026 and expects to publish final standards and guidance in March 2027, according to CoinDesk and crypto.news. The move is the next step in Australia's push to regulate crypto businesses under the same framework as traditional financial firms, following Parliament's passage of the Corporations Amendment (Digital Assets Framework) Act in April 2026.

A$14 million or 10% of revenue: the three capital models

The centerpiece of the consultation is how much capital crypto platforms should hold. ASIC has proposed three alternative models, with requirements depending on a platform's revenue, activities and custody arrangements, according to cryptotimes.io and CoinStats. Under one model, platforms without qualifying third-party custody arrangements would generally need at least A$14 million (about $9.7 million) in net tangible assets or 10% of average revenue, whichever is higher, while operators meeting certain third-party custody conditions could qualify for a lower base requirement of A$200,000 alongside additional calculations tied to assets or revenue. A second model sets a A$7 million threshold for certain operators that do not hold underlying assets classified as financial products. The third model uses a lower base requirement with add-ons based on activities, including A$500,000 for acting as an agent, A$750,000 for operating a neutral trading venue and A$1 million for trading as principal. ASIC also proposes cash-flow forecasts and audit requirements, with certain licensees holding more than A$100,000 in client money required to keep at least A$50,000 in surplus liquid funds.

Quarterly wallet reports and the offshore custody question

ASIC proposes allowing platforms to use offshore custody arrangements, while seeking feedback on what emergency safeguards should apply if an overseas parent or custodian fails, including whether Australian operators should have emergency access to private keys, according to TokenPost and CoinStats. The draft calls for quarterly reporting to ASIC of custody wallet structures and addresses, with certain records retained for seven years. Trading standards would restrict platforms from trading on their own account or accepting benefits to favor particular tokens, alongside best-execution requirements aimed at conflicts of interest.

What changes on April 8, 2027

The new framework takes effect on April 8, 2027, with new licensing applications opening that day, according to CoinDesk. Firms already operating in Australia have until October 7, 2027 to apply for authorization or request changes to existing licenses, and they may continue doing business while ASIC reviews their applications. Australia's move follows years of pressure after the 2022 collapse of FTX, which left about 30,000 Australian customers unable to access their money, and the bankruptcy of New Zealand exchange Cryptopia after a major hack. "Our approach is based on the principle of 'same activity, same risk, same regulatory outcome' to align Australia with the approach of comparable overseas jurisdictions," ASIC Commissioner Alan Kirkland said. He added that the proposed guidance "acknowledge[s] the increasing role of digital assets and tokenization, including in traditional parts of the financial system."

140 applications already in the queue

ASIC has already received more than 140 digital asset licensing applications, including over 110 during transitional relief, according to CoinDesk. The consultation window gives the industry six weeks to respond, and ASIC's final guidance in March 2027 will give firms roughly two months to prepare before applications open on April 8. The proposals mark the next step in Australia's effort to bring crypto businesses under the same regulatory framework as traditional financial firms, joining jurisdictions such as the European Union, Singapore and Hong Kong that have introduced dedicated crypto rules, according to cryptonews.net.

This article is news reporting and is not investment advice.

Sources

• ASIC announcement of Consultation Paper 392, October 15, 2026, primary source for the consultation scope, the three capital models, offshore custody proposals, quarterly wallet reporting, licensing timelines and application counts
• CoinDesk, October 15, 2026, secondary coverage of the consultation launch, capital models, A$14 million threshold, 140-plus applications, transitional relief and April 2027 timeline
• crypto.news, October 15, 2026, secondary coverage of the consultation scope, customer asset custody rules and trading transparency standards
• TokenPost, October 15, 2026, secondary coverage of offshore custody safeguards, emergency private-key access, quarterly reports and proprietary-trading restrictions
• CoinStats, October 15, 2026, secondary coverage of the three capital models, activity-based add-ons and seven-year record retention
• cryptotimes.io, October 15, 2026, secondary coverage of capital model details and liquidity requirements