ASIC opens consultation on crypto exchange custody and trading standards

Australia's securities regulator opened a consultation on Oct. 15 on proposed standards for crypto exchanges and digital asset custodians under legislation that takes effect next year. The consultation closes Nov. 27 and ASIC expects final guidance and standards in March 2027, according to CoinDesk.

The draft standards cover the separation and safeguarding of customer assets, trading transparency, settlement procedures and financial resources. Trading rules address market manipulation, conflicts of interest and how exchanges handle customer orders. ASIC said stablecoins used for payments are being addressed separately through Australia's payment services reforms.

The rules take effect on April 8, 2027, and affected firms would need to obtain or update regulatory approval or a license. Companies already operating in Australia can keep doing business while ASIC reviews their applications, and they have until Oct. 7 of the following year to file, per the report.

ASIC said it has recorded more than 140 applications from businesses seeking authorization to provide digital asset-related financial services. That figure counts filings, not licenses granted.

“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.

ASIC's April 2027 start date arrives roughly six months before the UK's regime takes effect in October 2027. The Financial Conduct Authority opened its crypto authorization gateway on Sept. 30 with a February 2027 application deadline, as this publication reported.