Australia’s ASIC Proposes New Licensing and Safety Rules for Crypto Platforms

Highlights:

• Australia’s ASIC has proposed new rules for crypto platforms ahead of digital asset laws taking effect in April 2027.
• Crypto businesses would face licensing requirements and stricter standards to protect customer assets and handle trades.
• ASIC is accepting public feedback until November 27 before finalizing its proposed rules for digital asset platforms.

Australia’s financial regulator has proposed new standards for crypto platforms ahead of digital asset laws taking effect on April 8, 2027. The proposals cover licensing, customer assets, trading and financial requirements. They aim to bring more crypto businesses under the country’s existing financial services rules.

In an October 15 announcement, the Australian Securities and Investments Commission (ASIC) opened consultation on Consultation Paper 392 (CP 392). The paper explains how businesses may need to comply with the Corporations Amendment (Digital Assets Framework) Act 2026. ASIC is seeking public feedback before finalizing its guidance and standards.

JUST IN: 🇦🇺 Australia’s markets watchdog seeks input on new Bitcoin & crypto exchange rules.

Consumer protection or government overreach? pic.twitter.com/8frmG60ULh

— Bitcoin Archive (@BitcoinArchive) October 15, 2026

Which Crypto Businesses Will Face the New Rules?

The new framework covers digital asset platforms that hold customers’ tokens and provide related services. It also covers tokenized custody platforms, which use digital tokens to record assets held for clients. ASIC said the guidance would also affect existing financial services firms, payment providers and market participants that work with digital assets. The exact requirements will depend on each business’s activities.

Under the proposals, affected operators will need to obtain an Australian financial services (AFS) license or update an existing one. They may also have to provide customer disclosure documents and clear platform rules. ASIC wants firms to meet standards for safeguarding client assets and handling transactions and settlement. Some operators will also face net tangible asset requirements, which concern the financial resources a business must maintain.

ASIC Commissioner Alan Kirkland said the approach follows the principle of “same activity, same risk, same regulatory outcome.” The aim is to apply comparable protections when businesses offer similar financial services, whether they use traditional systems or blockchain technology.

ASIC Plans Easier Licensing for Existing Crypto Firms

The regulator is considering a simpler licensing process for businesses that already hold an AFS license. The proposal could also help firms that previously applied for authorizations under ASIC’s digital asset guidance, known as Information Sheet 225. That guidance explains when existing Australian financial services laws apply to crypto products. ASIC updated it last October and later gave eligible businesses additional time to meet licensing requirements.

In June, ASIC gave crypto businesses until September 30 to work on meeting licensing requirements without facing certain enforcement actions. The regulator has received more than 140 applications from firms seeking approval to offer digital asset services. Of those, more than 110 were submitted between October 2025 and September 2026.

ASIC Opens Public Consultation Until November 27

ASIC is accepting comments on CP 392 until 5 p.m. Australian Eastern Daylight Time on November 27. Businesses and other interested parties can also submit their feedback by email. The consultation includes draft guidance alongside proposed standards for holding assets, processing trades and settling transactions. ASIC has also released a user guide to explain the consultation documents.

The regulator has consulted industry groups while preparing the package and plans further discussions during the feedback period. Meanwhile, the Australian government is still working on parts of the broader regulatory framework. The proposals are not yet final. ASIC is seeking industry feedback as crypto platforms prepare for the licensing and compliance requirements under the new laws.