Australia’s financial regulator is seeking tighter oversight of cryptocurrency exchanges and digital asset custodians, proposing new standards aimed at protecting customer holdings, improving trading practices and maintaining financial stability.
The Australian Securities and Investments Commission (ASIC) has outlined requirements governing how crypto businesses safeguard client funds, process transactions and maintain sufficient financial resources under legislation set to take effect in 2027.
ASIC opened a public consultation on the proposed framework on Thursday. Companies affected by the rules would be required to obtain the appropriate regulatory authorization or update their existing licenses. The consultation period ends on November 27, and the regulator expects to release its final guidance and standards in March 2027.
The initiative advances Australia’s plan to bring digital asset companies within a regulatory framework comparable to that applied to traditional financial service providers. Parliament passed the legislation in April, following similar regulatory efforts in the European Union, Singapore and Hong Kong.
The push for stronger protections follows earlier failures in the crypto industry that affected Australian investors. The collapse of FTX in 2022 left approximately 30,000 Australian customers unable to access their funds. In 2019, New Zealand-based cryptocurrency exchange Cryptopia also entered bankruptcy after a major hack.
The new framework is scheduled to take effect on April 8, 2027. Crypto businesses already operating in Australia will have until October 7, 2027, to submit license applications. They can continue providing services while ASIC reviews their submissions.
For customers, the proposed rules would provide more defined standards for how exchanges hold digital assets, execute trades and manage conflicts of interest. Crypto firms would also face stricter compliance obligations and financial requirements to operate lawfully in the country.
ASIC Commissioner Alan Kirkland said the regulator’s approach follows the principle of “same activity, same risk, same regulatory outcome.” The goal is to bring Australia’s rules into closer alignment with those of comparable overseas markets.
Under the consultation proposals, trading platforms would need to comply with standards covering the segregation and protection of customer assets, trading transparency, settlement arrangements and financial resources. The rules would also establish expectations for preventing market manipulation, addressing conflicts of interest and handling customer orders.
ASIC said it had received more than 140 applications from businesses seeking authorization to provide financial services involving digital assets. The regulator added that stablecoins used for payments are being addressed separately through Australia’s broader payment services reforms.
