CoinDesk
Australia’s financial regulator, ASIC, has proposed tougher standards for crypto exchanges and digital asset custodians, covering customer fund safeguards, trading transparency and financial requirements. The rules are set to take effect on April 8, 2027. Existing firms can keep operating while their applications are reviewed if they apply for a license by Oct. 7, 2027.
Why it matters
The proposal is the next step in bringing crypto businesses under a framework closer to the one governing traditional financial firms. ASIC Commissioner Alan Kirkland said the approach follows the principle of “same activity, same risk, same regulatory outcome,” aligning Australia with jurisdictions that have introduced dedicated crypto rules.
The proposed standards address the separation and safeguarding of customer assets, settlement procedures, conflicts of interest and the handling of customer orders. Trading rules would also cover market manipulation. The changes follow past failures that left customers exposed, including the 2022 collapse of FTX, which left about 30,000 Australians unable to access their money.
Market impact
For customers, clearer requirements could set expectations for how platforms hold assets and execute trades. For crypto businesses, the rules bring new compliance and financial obligations, while firms already operating have a transition period to seek authorization.
ASIC’s consultation closes Nov. 27, with final guidance expected in March 2027. The regulator says it has recorded more than 140 applications from businesses seeking authorization for digital asset-related financial services. Payment stablecoins are being addressed separately through reforms to payment services.
Frequently asked questions
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What do ASIC’s proposed rules require of crypto platforms?
The proposals cover customer asset safeguarding, trading transparency, financial resources, settlement, conflicts of interest and the handling of customer orders.
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When do the proposed Australian crypto rules take effect?
The rules are set to take effect on April 8, 2027.
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When must existing crypto firms apply for a license?
Existing firms must apply by Oct. 7, 2027, to continue operating while ASIC reviews their applications.
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When will ASIC release final guidance on the proposal?
The consultation closes Nov. 27, and final guidance is expected in March 2027.
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Are payment stablecoins covered by the same proposal?
No. ASIC said payment stablecoins are being addressed separately through Australia’s payment services reforms.
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