Australia's securities regulator has proposed custody, trading and financial-resource standards for digital asset platforms ahead of a new licensing framework beginning in April 2027. The consultation addresses how firms hold customer assets and conduct transactions, rather than simply which tokens appear on an exchange.
The Australian Securities and Investments Commission released Consultation Paper 392 on October 15. Responses close at 5 p.m. AEDT on November 27, and the proposed instruments remain open to change.
Licensing extends to the platform arrangement
ASIC's announcement says the framework covers digital asset platforms, which hold tokens for clients and provide associated services, and tokenised custody platforms, which record underlying assets as digital tokens.
Operators and other businesses providing relevant services will need appropriate Australian financial services authorisations. The package also covers customer disclosures, platform rules and standards for asset holding, transactions and settlement.
These requirements concern the arrangement through which a customer accesses an asset. A token can have the same market price while customers using different intermediaries face different custody controls, disclosures or routes to recover their property.
Capital proposals depend on the custody model
The consultation paper sets out three alternative models for net tangible asset requirements. Each includes a concession for operators meeting specified third-party custody conditions; other requirements vary with activities, revenue and assets held.
ASIC is asking which model best meets its objectives and how the options would affect competition and implementation costs. These are alternatives under consultation, not a single capital minimum already imposed on every crypto exchange.
The design creates a practical distinction between customer assets and the operator's financial resources. A large amount of crypto held for clients does not necessarily give a business money it can use to pay its own operating expenses or manage an orderly closure.
Nor does hiring a custodian eliminate the need to examine the contractual arrangement. The relevant questions include who authorises transfers, how records are reconciled and what happens if the operator or service provider fails. Our self-custody guide explains the different responsibilities involved when users control their own keys.
The timetable separates commencement from transition
CP 392's roadmap schedules publication of instruments and guidance for March 2027, followed by commencement of the Digital Assets Framework Act and the opening of licence applications on April 8. Existing qualifying operators have a transition window to apply by October 7, 2027.
For those firms, a deadline to submit an application differs from the date the new framework starts. The paper says existing operators can continue while their applications are assessed. That should not be read as a blanket permission covering every business or activity.
This is also separate from ASIC's earlier consultation on crypto-settled CFDs, which addresses retail derivative protections. The current package focuses on platform and custody arrangements.
The immediate task for affected businesses is to assess the proposed standards and respond before November 27. For customers, the key development is a framework that puts the way an intermediary holds and handles assets alongside licensing and disclosure, with final implementation details still to be settled.