Australia’s financial regulator has proposed a new set of standards for cryptocurrency exchanges and digital-asset custodians, seeking stronger protections for customer funds, clearer trading practices and additional financial safeguards as the country brings crypto businesses closer to the framework used for traditional financial firms.
The Australian Securities and Investments Commission, or ASIC, opened a consultation on the proposals on Thursday, according to CoinDesk. The consultation is scheduled to close on Nov. 27, while final guidance and standards are expected in March 2027.
The proposed rules are part of a broader regulatory shift approved by Australia’s Parliament in April. The new framework is due to take effect on April 8, 2027. Existing crypto businesses would be able to continue operating while their applications are assessed, provided they apply for a licence by Oct. 7, 2027.
What the proposed framework covers
ASIC’s consultation paper sets out requirements for businesses that hold or facilitate transactions involving digital assets. The standards would address how platforms safeguard and separate customer assets, how trades are carried out and recorded, and whether firms have sufficient financial resources to operate.
The proposals also cover settlement procedures, trading transparency and the handling of customer orders. Other areas include market manipulation and potential conflicts of interest between a platform and its users.
For customers, the intended effect would be greater clarity about how an exchange holds assets, executes orders and manages situations in which its interests could differ from those of its clients. For crypto companies, the framework would create additional compliance duties and financial requirements tied to operating legally in Australia.
ASIC Commissioner Alan Kirkland said the approach was based on the principle of “same activity, same risk, same regulatory outcome.” The stated aim is to align Australia’s treatment of crypto businesses with that of comparable overseas jurisdictions.
ASIC said it has received more than 140 applications from businesses seeking authorisation to provide financial services related to digital assets. The proposed rules would require affected firms to obtain or update their regulatory approval or licence.
Why Australia is tightening oversight
The changes follow several high-profile failures that exposed the risks faced by crypto customers. The collapse of FTX in 2022 left about 30,000 Australian customers unable to access their money. In neighbouring New Zealand, the exchange Cryptopia went bankrupt three years earlier after a major hack.
Those events provide background to the regulator’s focus on custody, asset protection and operational standards. Under the proposed system, exchanges and custodians would face more explicit expectations about how customer holdings are separated and safeguarded, rather than operating under a less specific set of requirements.
Australia’s move also reflects a wider international effort to create dedicated rules for crypto markets. The source material identifies the European Union, Singapore and Hong Kong as jurisdictions that have introduced crypto-specific regulatory frameworks. Australia’s Parliament passed the legislation underpinning the new approach in April.
The framework does not resolve every digital-asset issue through the same consultation. ASIC said stablecoins used for payments are being addressed separately as part of Australia’s payment-services reforms. Stablecoins are digital assets designed to maintain a stable value, commonly in relation to a traditional currency, although the source material does not specify the details of the separate reforms.
Timeline and Moneyiar market picture
The main dates in the proposed regulatory process are:
- Nov. 27: consultation closes.
- March 2027: ASIC expects to issue final guidance and standards.
- April 8, 2027: the new rules take effect.
- Oct. 7, 2027: deadline for existing firms to submit licence applications while continuing to operate during review.
Moneyiar market data at the stated times showed mixed performance among the listed digital assets:
- Lighter (LIT) was priced at $3.0691350323, down 1.29% over 24 hours and 15.79% over seven days, as of 9:03 p.m. on Oct. 15, 2026.
- Ethereum Name Service (ENS) stood at $5.7494560609, up 0.09% over 24 hours and down 7.9% over seven days, as of 9:04 p.m.
- Safe (SAFE) traded at $0.1123371279, down 2.88% over 24 hours but up 3.75% over seven days, as of 9:03 p.m.
- Dog (Bitcoin) (DOG) was at $0.0009470179, down 1.44% over 24 hours and up 1.23% over seven days, as of 9:03 p.m.
The ASIC consultation will determine how the proposed standards are refined before the regulator publishes its final guidance. The framework’s implementation would then set the conditions under which existing and new crypto businesses operate in Australia.
