Australia's securities regulator ASIC has proposed standards for crypto exchanges and digital asset custodians covering customer asset protection, trade execution and financial requirements. The rules take effect April 8, 2027, and the consultation closes Nov. 27.
ASIC opened a consultation on new standards for cryptocurrency exchanges and digital asset custodians on Thursday. The standards set out how firms must protect customer funds, execute trades and meet financial requirements, and affected firms would need to obtain or update their regulatory approval or license.
What the proposed standards cover
Under ASIC's consultation paper, platforms would face standards on separating and safeguarding customer assets, trading transparency, settlement procedures and financial resources. The proposed trading rules also address market manipulation, conflicts of interest and how exchanges handle customer orders.
ASIC Commissioner Alan Kirkland said the approach rests on the principle of "same activity, same risk, same regulatory outcome", according to CoinDesk. He said it aims to align Australia with comparable overseas jurisdictions.
Licensing timeline
The rules take effect on April 8, 2027. Crypto firms already operating in Australia have until Oct. 7, 2027 to apply for a license and can keep doing business while ASIC reviews their applications. The consultation closes on Nov. 27, with final guidance and standards expected in March 2027.
ASIC said it has recorded more than 140 applications from businesses seeking authorization to provide digital asset-related financial services. Stablecoins used for payments are being addressed separately through Australia's payment services reforms.
Parliament passed the legislation in April, joining jurisdictions such as the European Union, Singapore and Hong Kong that have introduced dedicated crypto regulations.
Source: CoinDesk
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