Australia’s corporate regulator has opened consultation on proposed capital, custody and trading standards for digital asset platforms as the country prepares to bring crypto exchanges and tokenized custody businesses into its financial-services licensing framework in April 2027.
The consultation package covers digital asset platforms that hold tokens for clients and tokenized custody platforms that represent underlying assets through digital tokens. It includes draft guidance on licensing, asset-holding standards, transaction and settlement practices, and financial requirements. The regulator said final drafts could change substantially after feedback.
The proposed financial rules include three capital models. Under one model, platforms without qualifying third-party custody arrangements would need net tangible assets of at least 14 million Australian dollars or 10% of average revenue, whichever is higher. The requirements also contemplate liquidity controls and regular review of financial resources by a registered company auditor.
The custody proposals would permit offshore arrangements, while asking whether Australian operators should retain emergency access to private keys if an overseas parent or related company collapses. Platforms would have to segregate client assets, maintain records, reconcile holdings and report custody wallet structures and addresses to the regulator each quarter. Relevant records would be retained for seven years.
Trading rules would restrict platforms from dealing as principal on their own marketplaces and would target benefits that could encourage preferential treatment of particular tokens. Model-specific exceptions are under consideration, including for different custody, brokerage, market-making and matched-principal structures.
The law gives the regulator responsibility for licensing and supervising the affected platforms, while requiring operators to obtain or vary an Australian financial services licence and provide customer disclosures and platform rules.
Industry responses described the consultation as a shift from broad regulatory debate to implementation. The Digital Economy Council of Australia welcomed the practical focus but said its members would examine whether the capital models are proportionate for businesses of different sizes. OKX Australia chief executive Shane Chandra said the standards would favor firms that had already invested in compliance, capital and custody, while Piper Alderman partner Steven Pettigrove said the proposed net-asset requirements would encourage scale and established custody providers. Thomsons partner Liam Hennessy said the custody reporting provisions could affect businesses that rely on offshore infrastructure and that restrictions on affiliated market makers could require changes to existing trading models.
Submissions close on Nov. The regulator plans to publish final standards and guidance in March 2027, with the new framework beginning in April and operators receiving a transition period to apply for the relevant licence while their applications are assessed.