Australia plans to implement new regulations for crypto exchanges in 2027

On October 15, 2026, Australia proposed new regulations for cryptocurrency trading and custody platforms. The financial regulatory agency, the Australian Securities and Investments Commission (ASIC), is seeking public feedback on these regulations, with a deadline of November 27; the country's digital asset licensing framework will come into effect in April 2027.

• Australia has launched consultations on proposed regulations for crypto platforms, with feedback from the industry due by November 27, 2026.
• ASIC has proposed three capital requirement models, which include setting a threshold of 14 million Australian dollars for certain platform operators that do not provide hosting services.
• New license applications will be open on April 8, 2027, while the deadline for existing operators is October 7.
• The proposed rules cover customer asset custody, transaction transparency, conflicts of interest, and financial resource requirements.
• ASIC indicates that more than 140 applications related to digital asset licenses have been received, of which over 110 came during the transitional exemption period.

ASIC was announced alongside the release of 'Consultation Document 392', which outlines the proposed requirements regarding customer asset protection, trading behavior, and financial resources. Regulatory authorities expect to issue final guidelines in March 2027, giving companies time to prepare for the new licensing requirements.

Australian crypto regulation will require new licenses

New regulations to be introduced in Australia will bring more cryptocurrency companies under the country's existing financial services licensing framework.

The "2026 Company Law Amendment (Digital Assets Framework) Act" establishes two regulated categories: digital asset platforms and tokenized custody platforms. Digital asset platforms hold digital tokens for customers and provide related services; tokenized custody platforms use digital tokens to record customers' rights to underlying assets.

Enterprises covered by this legislation will be required to hold an Australian financial services license, commonly referred to as a AFS license, or make appropriate changes to existing licenses. Exemptions may apply to certain business arrangements.

The legislation was passed by parliament on April 1st and received royal assent on April 8, 2026. According to the latest consultation document ASIC, the new framework will come into effect on April 8, 2027.

Existing operators will have until October 7, 2027, to apply for the required authorization or request a change to their current licenses. Enterprises that submit applications during the transition period may continue to operate while their applications are under review by ASIC, but they must comply with the applicable conditions.

ASIC plans to release guidelines explaining which enterprises need authorization and how these rules will be aligned with existing financial services legislation.

Commissioner Alan Kirkland described the approach of regulatory authorities as 'the same activities, the same risks, the same regulatory outcomes'.

He said that these proposals recognize the increasing use of digital assets and tokenization in traditional finance, while maintaining customer protection standards.

Regulatory authorities stated that they have received over 140 applications related to digital asset financial services. More than 110 of these applications were submitted during the temporary regulatory exemption period from October 2025 to September 30, 2026.

Previously, Australia set a deadline for crypto licensing in September, which related to existing financial services obligations. This is separate from the new licensing categories that will come into effect in 2027.

ASIC proposes a capital requirement of up to 14 million Australian dollars

One of the main topics of this consultation is how much capital cryptocurrency companies should maintain to cover their financial obligations.

ASIC proposes three alternative models regarding tangible net asset requirements. These models will determine the level of financial resources that a company must maintain based on its custody arrangements, revenue, and transaction activities.

According to the first model, if the platform does not have a suitable third-party hosting arrangement, it must hold at least 14 million Australian dollars in tangible net assets, or 10% of its average income; whichever is higher, shall apply.

Enterprises that meet the required third-party hosting conditions may be eligible for lower thresholds. The calculation will take into account AUD 200,000, a certain percentage of the assets held, and 10% of the average income; the specific eligibility requirements will be determined by the proposed model.

The second model establishes a separate threshold of 7 million Australian dollars for operators that do not hold underlying assets classified as financial products, provided that they do not meet the preferential conditions for third-party custody.

Other operators will usually still be subject to the threshold of A$14 million, or requirements based on revenue.

The third model proposed by ASIC suggests using the highest of the following three criteria as the starting requirement: A minimum of 2 million Australian dollars, a certain percentage of the underlying assets, or 10% of the income. Depending on the platform's activities, additional amounts may also be required.

These additional amounts include: an increase of 500,000 Australian dollars for enterprises acting as agents; an increase of 750,000 Australian dollars for operators of neutral trading venues; and an increase of 1 million Australian dollars for platforms that trade directly with customers in their own capacity.

Regulatory authorities are seeking public feedback to determine whether these amounts are appropriate and how they will affect businesses of different sizes.

The proposed standards also cover cash flow forecasting and audit requirements, including measures designed to help enterprises meet their operating expenses.

ASIC has not yet selected a final capital model. The consultation document states that these requirements may change after receiving feedback and completing further regulatory work.

Cryptocurrency exchanges may face stricter trading and custody regulations

ASIC The proposed standards will require cryptocurrency platforms that are subject to these requirements to strengthen the way they store customer assets and process transactions.

The proposals regarding hosting involve record-keeping, control of customer assets, and supervision of external hosts. Enterprises will need to maintain appropriate records that explain how customer assets are held and managed.

Regulatory authorities have not proposed a one-size-fits-all requirement that all digital assets must remain within Australia. Companies that use overseas custody arrangements will face requirements related to the disclosure and management of associated risks.

The platform will need to retain records of relevant digital wallets and blockchain addresses. The proposed reporting arrangement will provide ASIC with the information required to supervise its hosting activities, but it will not require the platform to disclose private keys or recovery phrases.

In terms of transactions, ASIC hopes that operators will disclose more clearly information regarding customer orders and completed transactions.

The proposed standards will require the establishment of control measures to address market misconduct, including manipulation and unfair trading practices.

ASIC is considering restricting platforms that use their own accounts to trade against customers, while also acknowledging that certain business models inherently involve the platform acting as a counterparty in those transactions.

This consultation also involves conflicts of interest, including potential impacts on the platform's acceptance of certain digital tokens for transactions or profit arrangements.

According to the proposed standards, enterprises that execute orders for customers usually need to take reasonable measures to obtain appropriate transaction results.

These requirements are part of ASIC's efforts to regulate different exchange structures, which include platforms that match buyers and sellers, as well as enterprises that provide liquidity directly.

A previous ruling by the Australian High Court regarding Block Earner determined that one of the company's past fixed-income cryptocurrency products required financial services authorization under current laws.

The ruling in June 2026 targeted a specific investment product of Block Earner, rather than all cryptocurrency exchanges or all digital tokens.

Stablecoin Regulations and the Deadline for Feedback in November

The consultation regarding ASIC also extends to stablecoins that financial service companies may use when calculating available financial resources.

Regulatory authorities propose to exclude certain stablecoins issued by a particular company or its affiliated entities from being considered qualified assets that meet the requirements for tangible net assets.

Stablecoins held through arrangements by independent third parties may still be eligible, depending on their structure and applicable financial requirements.

This consultation also examines how existing regulations apply to encapsulated tokens, managed staking, and public blockchain infrastructure. ASIC plans to update its digital assets guidelines to clarify how certain exemptions work.

Regulatory authorities will accept written comments through [ email protected ], with the deadline being 5 p.m. on November 27, 2026, Eastern Australian Summer Time.

ASIC is expected to review these opinions during the period from November 2026 to March 2027. Before finalizing the standards, regulatory authorities may conduct further consultations.

Regulatory authorities have scheduled to release the final regulatory documents and guidelines in March 2027, after which the framework will come into effect on April 8th.

Existing enterprises covered by the new regulations must submit their license applications or requested license changes by October 7, 2027.

ASIC is considering releasing a list of companies that submitted applications before the transition deadline, so that customers and industry participants can identify which operators are eligible to continue conducting transactions during the application review period.