Australia's ASIC Proposes Custody, Trading and Capital Rules for Crypto Platforms

Australia's corporate regulator has published draft rules for crypto platforms that will need licenses under the country's new digital asset law. The Australian Securities and Investments Commission (ASIC) released Consultation Paper 392 on Oct. 15 and is taking comments until 1 a.m. ET on Nov. 27, 2026 (5 p.m. Nov. 27 in Sydney) (source 1). The rules are proposals and can change.

The law is the Corporations Amendment (Digital Assets Framework) Act 2026, which ASIC calls the DAF Act. It brings two new kinds of business into financial services regulation: digital asset platforms (DAPs), which hold digital tokens for clients, and tokenised custody platforms (TCPs), which record underlying assets held for clients as digital tokens (source 1). The regime starts on April 8, 2027 (sources 1, 2).

ASIC's proposed guidance explains how the framework applies to operators of DAPs and TCPs and others providing financial services for these new products. It also covers existing Australian financial services licensees, market participants, payments providers and other businesses that use or deal with digital assets (source 1). ASIC says its package refers to regulatory design work the government is developing in parallel, so industry can see a complete picture of the future approach (source 1).

ASIC's package covers draft guidance plus proposed standards on asset holding, trading and settlement, and financial requirements for licensees (source 1). Under the proposed guidance, firms would need to apply for or vary an Australian financial services license, provide disclosure documents and platform rules, and meet asset-holding standards, transactional and settlement standards, and net tangible asset (NTA) requirements where relevant (source 1).

ASIC Commissioner Alan Kirkland said: "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. Bringing digital asset platforms and tokenised custody platforms into the financial services regulatory framework means consumers can have greater confidence when trading digital assets" (source 1).

Custody. The proposed asset-holding standards, numbered B1.1 to B1.12, cover platform governance, permitted holding arrangements for underlying assets and money, disclosure of those arrangements, and the identification, safeguarding, segregation and pooling of assets (source 2, pp. 25-27). They also cover redemption and delivery rights, use of underlying assets and arrangements with custodians (source 2, pp. 26-27).

Trading and settlement. ASIC says its proposed transactional and settlement standards are designed to apply proportionately to different business models, from acting on behalf of clients to running a neutral trading venue (source 2, p. 35). They would not apply to custody-only DAPs that do not undertake transaction or settlement functions, nor to most of a TCP's operations (source 2, p. 35). A separate proposal says DAP operators must not accept any financial or non-financial benefit to preference one admitted token over others, including in admission, removal, trading and marketing (source 2, p. 40).

Trading as principal. The paper proposes that order-matching DAP operators "must not trade as principal on their own or related body corporate DAPs" (source 2). The proposed exceptions cover DAPs that are tied brokers, tied dealers, acting as agent, or in certain arrangements the principal counterparty to all transactions (source 2). ASIC says the restriction "limits conflicts of interest" and asks whether it is "overly restrictive" (source 2). It also asks whether there are circumstances where an operator should be able to trade as principal through its platform with an exemption (source 2, p. 39).

Wallet reporting. Where the underlying asset is a digital token, DAP and TCP operators would have to keep records of wallet structures and addresses for at least seven years and report "quarterly to ASIC a list of wallets and addresses holding underlying assets for clients" (source 2). Operators would also have to notify ASIC of material changes affecting how the tokens are held, possessed or safeguarded (source 2, p. 27).

Capital. ASIC sets out three options for NTA requirements and asks which works best (source 2). In two of them, an operator that has not met third-party custody conditions would hold at least the greater of 14 million Australian dollars (A$14,000,000) or 10% of average revenue; under the second model, that applies only if the operator holds underlying assets that are financial products, and other operators face the greater of A$7,000,000 or 10% (source 2). The third model adds two amounts: the greatest of A$2,000,000, 0.5% of average underlying assets up to A$14,000,000, or 10% of average revenue, plus A$500,000 to A$1,000,000 depending on whether the platform acts as agent, runs a neutral venue or trades as principal (source 2). In all three, operators that meet the third-party custody conditions have a separate test listing A$200,000, 0.5% of average underlying assets up to A$7,000,000, or 10% of average revenue (source 2). The dollar figures are indexed annually to CPI (source 2). In the third model, a platform that "trades as principal with its clients" regularly offers to buy and sell tokens either on its own behalf, which ASIC likens to a traditional market maker, or while facilitating matched principal trading (source 2, p. 52). ASIC asks which model best supports the requirement's objectives and how the proposed obligations would affect existing operators' time and costs (source 2, p. 51).

Licensing. ASIC proposes to streamline licensing for existing licensees and for firms that applied under its earlier guidance, Information Sheet 225 (source 1). It says it has recorded over 140 applications from businesses seeking to provide digital asset-related financial services, including more than 110 received during a no-action period from October 2025 to Sept. 30, 2026 (source 1). Existing platforms would have until Oct. 7, 2027 to apply for a license or variation, and can keep operating while ASIC assesses it (source 2). ASIC says it is considering publishing a list of firms that apply by that date, so consumers and industry know who is entitled to operate (source 2, p. 17).

ASIC says it will hold events and targeted roundtables during the consultation. Submissions go to fintech@asic.gov.au (source 1).

Sources

1. ASIC, "26-245MR ASIC consults on implementation of new digital asset laws," media release, Oct. 15, 2026: https://www.asic.gov.au/about-asic/news-centre/find-a-media-release/2026-releases/26-245mr-asic-consults-on-implementation-of-new-digital-asset-laws
2. ASIC, Consultation Paper 392, "Digital asset law reform implementation: Proposed standards and guidance," Oct. 15, 2026 (PDF): https://download.asic.gov.au/media/0pqj5lgc/cp392-published-15-october-2026.pdf

Holding the Corner.

Not financial advice.