QuantCapThe country’s regulator, ASIC, has proposed tougher rules to protect users’ digital assets, crypto trading and to safeguard the country’s financial stability.
Australia’s financial watchdog seeks stiffer rules for crypto exchanges ahead of licensing deadline
The country’s regulator, ASIC, has proposed tougher rules to protect users’ digital assets, crypto trading and to safeguard the country’s financial stability.
Australia’s financial regulator proposed standards requiring cryptocurrency exchanges and digital asset custodians to safeguard customer funds, ensure transparent trading and meet financial requirements. The rules take effect April 8, 2027, and existing firms may continue operating if they apply for a license by Oct. 7, 2027, while regulators review their applications. The consultation closes Nov. 27, with final guidance expected in March 2027, as Australia moves to regulate crypto businesses more like traditional financial firms.
Australia's financial regulator proposed new standards for cryptocurrency exchanges and digital asset custodians, setting out how companies must protect customer funds, execute trades and meet financial requirements under laws that take effect next year.
The Australian Securities and Investments Commission (ASIC) said it opened a consultation on the rules on Thursday, which would require affected firms to obtain or update their regulatory approval or license. The consultation closes on Nov. 27, with final guidance and standards expected in March 2027.
The proposals mark the next step in Australia’s effort to bring crypto businesses under the same regulatory framework as traditional financial firms. Parliament passed the legislation in April, joining jurisdictions such as the European Union, Singapore and Hong Kong, which have introduced dedicated crypto regulations.
Australia's move comes years after the 2022 collapse of FTX left about 30,000 Australian customers unable to access their money. Three years earlier, Cryptopia, an exchange in neighboring New Zealand, went bankrupt after a major hack.
The rules take effect on April 8, 2027. Crypto firms already operating in the country have until Oct. 7 of the next year to apply for a license and can continue doing business while ASIC reviews their applications.
For Australian investors, the changes would mean clearer rules on how exchanges hold their assets, execute orders and handle conflicts of interest. Crypto companies would face new compliance obligations and financial requirements to operate legally in the country.
"Our approach is based on the principle of 'same activity, same risk, same regulatory outcome' to align Australia with the approach of comparable overseas jurisdictions," ASIC Commissioner Alan Kirkland said.
Under the consultation paper, platforms would be subject to standards covering the separation and safeguarding of customer assets, trading transparency, settlement procedures and financial resources. The proposed trading rules also address market manipulation, conflicts of interest and how exchanges handle customer orders.
ASIC said it has recorded more than 140 applications from businesses seeking authorization to provide digital asset-related financial services. It also said stablecoins used for payments are being addressed separately through Australia's payment services reforms.
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Beyond the Risk-Free Rate: Diversified Real World Yield in Productive Stablecoins
Beyond the Risk-Free Rate: Diversified Real World Yield in Productive Stablecoins
Diversified RWA stablecoins sustain 5-7% yield from real credit as crypto funding compresses to ~4%. GENIUS pushes yield off-chain; TAM grows to $4B in 3 years.
Diversified RWA stablecoins sustain 5-7% yield from real credit as crypto funding compresses to ~4%. GENIUS pushes yield off-chain; TAM grows to $4B in 3 years.
Why it matters:
Diversified RWA stablecoins sustain 5-7% yield from real credit as crypto funding compresses to ~4%. GENIUS pushes yield off-chain; TAM grows to $4B in 3 years.
Hyperliquid founder wants U.S. oversight of trading platforms, not his blockchain
Hex founder Richard Heart arrested in Istanbul, Turkish media report
Kalshi CEO says state-led oversight of U.S. prediction markets would push them out