- ASIC proposed new standards for crypto exchanges and digital asset custodians in Australia.
- The rules take effect on April 8 2027 and existing firms can keep operating if they apply by Oct. 7 2027.
- The consultation closes on Nov. 27 and final guidance is expected in March 2027.
Australia crypto rules are moving toward stricter oversight for exchanges and digital asset custodians as the country’s financial regulator opens a consultation on new standards. The Australian Securities and Investments Commission said the proposals would require firms to protect customer funds, provide transparent trading and meet financial requirements under laws that take effect next year. Existing businesses would need to obtain or update regulatory approval or a license, while some could continue operating during the review process if they apply by the stated deadline. The plan is part of a broader shift to regulate crypto businesses more like traditional financial firms.
Australia crypto rules outline tougher standards
The Australian Securities and Investments Commission, or ASIC, said the proposed standards would apply to cryptocurrency exchanges and digital asset custodians. The rules would cover the separation and safeguarding of customer assets, trading transparency, settlement procedures and the financial resources firms need to operate.
The proposed trading rules also address market manipulation, conflicts of interest and the way exchanges handle customer orders. For investors in Australia, ASIC said the changes would create clearer rules on how exchanges hold assets, execute orders and manage potential conflicts.
Timeline for licensing and consultation
ASIC said the consultation on the proposals opened on Thursday and will close on Nov. 27. Final guidance and standards are expected in March 2027, ahead of the new laws taking effect on April 8, 2027.
Crypto firms already operating in the country have until Oct. 7, 2027, to apply for a license. Those firms can continue doing business while ASIC reviews their applications, giving existing operators a path to keep running during the regulatory review period.
Why Australia crypto rules are being advanced
The regulator said the proposals are another step in Australia’s effort to place crypto businesses under the same regulatory framework as traditional financial firms. Parliament passed the legislation in April, and ASIC Commissioner Alan Kirkland said the approach is based on the principle of “same activity, same risk, same regulatory outcome.”
Kirkland also said Australia is seeking to align its rules with comparable overseas jurisdictions. The source named the European Union, Singapore and Hong Kong as places that have introduced dedicated crypto regulations.
Background to the regulatory push
Australia’s move follows earlier failures in the crypto sector that affected users in the region. After the 2022 collapse of FTX, about 30,000 Australian customers were unable to access their money, according to the source.
The source also noted that three years earlier, Cryptopia, an exchange in neighboring New Zealand, went bankrupt after a major hack. ASIC said it has recorded more than 140 applications from businesses seeking authorization to provide digital asset-related financial services, while stablecoins used for payments are being handled separately through Australia’s payment services reforms.
Conclusion
Australia crypto rules are entering a new phase as ASIC proposes stricter standards for exchanges and custodians ahead of the licensing process. The plan sets requirements around customer asset protection, transparent trading, settlement procedures and financial resources, while also addressing market manipulation and conflicts of interest. The consultation will run until Nov. 27, with final guidance expected in March 2027 and the rules taking effect on April 8, 2027. Existing firms can keep operating if they apply by Oct. 7, 2027, as Australia continues bringing crypto businesses under a framework closer to that used for traditional financial firms.
Disclaimer
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