Australia Proposes Capital, Custody Rules for Crypto Ecosystem
Written by Felix Ng, staff editor, Edited by Yohan Yun, staff editor
Australia seeks feedback on crypto platform rules ahead of 2027 rollout
Published: Oct 15, 2026
The Australian securities regulator has initiated a consultation process regarding proposed capital, custody, and trading standards for crypto platforms, following Parliament’s passage of digital asset legislation in April.
Key Proposals
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Capital Models: Three alternative models are presented, one of which requires operators without third-party custody arrangements to maintain at least AU$14 million ($9.7 million) in net tangible assets or 10% of average revenue, whichever is greater.
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Offshore Custody: The regulator proposes allowing offshore custody while requesting feedback on safeguards in case of failure by an overseas parent or related company.
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Trading Restrictions: Restrictions are suggested on platforms trading for their own account and accepting benefits to favor specific tokens, aiming to mitigate potential conflicts of interest.
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Quarterly Reporting: Platforms will be required to report quarterly on wallets holding customer assets.
ASIC Commissioner Alan Kirkland stated, "Our proposed guidance and standards acknowledge the increasing role of digital assets and tokenization."
Amy-Rose Goodey, CEO of the Digital Economy Council of Australia, expressed enthusiasm, "After years of regulatory reform discussions, it's encouraging to see Australia taking practical steps."
OKX Australia CEO Shange Chandra agreed, "These standards are appropriately stringent. They will incentivize operators to invest in compliance, capital, and custody, while challenging those who have been laggards."
The consultation period allows industry stakeholders to provide feedback on these proposals before their implementation in 2027.