ASIC proposes custody and trading rules for crypto platforms

On 15 October, Australia’s Securities and Investments Commission (ASIC) opened a consultation on standards and guidance for digital asset platforms and tokenised custody platforms. The proposals would shape how these businesses hold client assets, execute trades and meet financial requirements under a new licensing regime.

ASIC’s announcement of Consultation Paper 392 says the framework comes from the Corporations Amendment (Digital Assets Framework) Act 2026. A digital asset platform, or DAP, holds tokens for clients and may offer services such as trading or settlement. A tokenised custody platform, or TCP, holds an underlying asset and issues a token representing rights to it.

What rules is ASIC proposing for crypto platforms?

ASIC is proposing a new regulatory guide, asset-holding standards, transaction and settlement standards, and tailored financial requirements for DAP and TCP operators. The measures are proposals for feedback, and ASIC says the draft instruments may change considerably before they are finalised.

The consultation paper outlines requirements for safeguarding and administering client assets, including governance, segregation, reconciliation and oversight of third-party custodians. It also proposes capital, liquidity, cash-flow forecasting and audit requirements, with one of three possible net tangible asset models for operators. Net tangible assets are a measure of a firm’s assets after liabilities.

For trading, the proposed standards cover execution, settlement, transparency, conflicts and misconduct. ASIC proposes that platforms executing client orders on another venue take reasonable steps to get the best outcome and maintain access to at least two adequate liquidity sources, subject to specified exemptions.

How could the proposals affect custody and trading?

Platforms holding client tokens could face new record-keeping and reporting duties. ASIC proposes that they retain records of wallet structures, addresses and control arrangements for at least seven years, and report to ASIC quarterly the wallets and addresses holding client assets.

ASIC says the information could help it trace and reconcile assets and monitor activity on public blockchains. The proposal does not ask firms to provide private keys, seed phrases or credentials that could authorise a transfer.

The proposed rules would also require operators to manage conflicts and disclose relevant information to clients. ASIC’s draft guidance says firms may need to apply for or vary an Australian financial services licence, provide customer disclosure documents and platform rules, and meet standards where relevant.

When does feedback close, and when would the regime start?

Submissions are due by 5pm AEDT on 27 November 2026, and ASIC’s paper sets out a timetable for finalising guidance and instruments in March 2027. The new framework is scheduled to commence on 8 April 2027.

Existing firms operating platforms covered by the law would have until 7 October 2027 to apply for a new licence or vary an existing one, according to ASIC’s Consultation Paper 392. The paper says those firms can continue operating while ASIC assesses their applications.

If you are affected and want to respond, ASIC says you can:

1. Review the proposals in Consultation Paper 392 and its draft instruments.
2. Send feedback to fintech@asic.gov.au by 27 November 2026.

Sources

• announcement of Consultation Paper 392 — asic.gov.au
• Consultation Paper 392 — download.asic.gov.au