Australia seeks feedback on crypto platform rules ahead of 2027 rollout
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Australia’s securities regulator, ASIC, has opened a consultation on proposed capital, custody, and trading requirements for crypto platforms as it prepares to implement legislation expanding industry oversight. The consultation includes three capital model options, restrictions on platforms trading for their own account, and quarterly reporting mandates for wallets holding customer assets. ASIC is also considering allowing offshore custody while seeking input on safeguards concerning overseas parent or related company failures.
Why it matters
The proposals aim to provide greater regulatory clarity and set practical standards for licensing, asset safeguarding, and financial requirements under Australia’s new digital asset framework. Industry leaders view the measures as significant steps towards implementing regulation and potentially encouraging industry consolidation. The framework acknowledges the growing role of digital assets within traditional financial systems.
Key context
The consultation follows the passage of the Corporations Amendment (Digital Assets Framework) Act earlier in 2023, and ASIC’s 18-month implementation roadmap. Operators will have until October 7, 2027, to apply for licenses and can continue operating while applications are assessed. The proposals reflect the Australian market’s reliance on offshore infrastructure for digital asset custody and address risks from affiliated market makers and trading conflicts of interest.
Key numbers and entities
ASIC (Australian Securities and Investments Commission) is the primary regulator involved. Proposed capital requirements include a minimum of 14 million Australian dollars (approximately $9.7 million USD) in net tangible assets for some operators. Other entities commenting include ASIC Commissioner Alan Kirkland, Digital Economy Council of Australia CEO Amy-Rose Goodey, OKX Australia CEO Shane Chandra, and Thomsons partner Liam Hennessy.
What remains unclear
Details on which of the three capital models ASIC will adopt remain unsettled. Specific safeguards regarding emergency access to private keys for offshore custody situations are still open for feedback. The exact impact on market participants and how these rules will interact with existing trading models are yet to be fully determined.