ASIC opens consultation on crypto platform custody, trading and capital standards

Australia’s securities regulator opened consultation on October 15 on the operating standards for digital asset platforms and tokenised custody platforms. ASIC’s package moves implementation of the country’s new framework into detailed questions about safeguarding assets, trading practices and financial resources.

Consultation Paper 392 contains proposals rather than final policy. Its timetable calls for feedback by November 27, final instruments and guidance in March 2027, and commencement of the Digital Assets Framework Act on April 8. Existing operators covered by the transition would need to apply for a new or varied Australian financial services licence by October 7, 2027, and could continue operating while ASIC assesses their application.

Custody location is one practical issue. In proposal B2, ASIC proposes allowing underlying assets to be held outside Australia. It asks whether fallback arrangements are needed for emergencies, including the failure of an overseas parent or related company. The paper discusses emergency access to private keys as an option with operational complexities; it is not announcing a settled requirement to provide that access.

Under proposal B5, operators would retain records of wallet structures, addresses and related asset-control information for at least seven years. They would report wallets and addresses holding client assets to ASIC quarterly. These proposed obligations concern the regulator’s visibility into custody arrangements.

Capital requirements also remain open. Table 7 presents three alternative net-tangible-asset models. One would require an operator outside the qualifying third-party-custody arrangements to hold the greater of A$14 million or 10% of average revenue. Other models distinguish asset holdings or business activities. Presenting A$14 million as a universal, final requirement would miss both the alternatives and the consultation status.

Felix Ng’s report for Cointelegraph includes responses from the Digital Economy Council of Australia and OKX Australia. The council’s Amy-Rose Goodey said it would examine how the capital options affect businesses of different sizes and the concessions for third-party custody.

Trading conflicts are another part of the package. ASIC proposes limits on operators and related companies trading as principal through an order-matching platform, with specified exceptions for other operating models. The distinction makes the platform’s structure relevant to how the proposed standards would apply.

ASIC’s release and document collection invite feedback on the guidance and draft instruments. The next decision is the final form of those standards after consultation; today’s package does not settle every licensing or custody question.

Sources

ASIC CP392: proposed standards and guidance · ASIC: consultation release 26-245MR · Australia proposes platform rules · ASIC: CP392 and four draft attachments