Australia Raises the Standards: ASIC Proposes Tougher Safeguards for Crypto Exchanges

By Kevin · 2026-10-16 · News

Oct. 16 (CandyPulse) — If you trade crypto in Australia, the rules protecting your money are about to get a lot tighter. The Australian Securities and Investments Commission (ASIC) has opened a consultation on new standards for crypto exchanges and digital asset custodians, and the message is clear: platforms that hold customer funds will have to prove they can keep them safe.

Key takeaways

ASIC opened Consultation Paper 392 on Oct. 15, setting out draft standards for crypto exchanges and custodians
Exchanges that hold client assets themselves would need at least A$14 million in net tangible assets, or 10% of average revenue, whichever is greater
Platforms would report wallet arrangements and addresses every quarter and keep seven years of trading records
Exchanges that match customer orders could be barred from trading for their own account
Submissions close Nov. 27, 2026, with final guidance expected in March 2027

What ASIC is proposing

The proposals sit in Consultation Paper 392, ASIC's draft standards and guidance for the Corporations Amendment (Digital Assets Framework) Act 2026. They cover three big areas: how much money exchanges must hold, how they look after customer assets, and how they trade.

Area	What ASIC proposes
Capital	At least A$14M in net tangible assets, or 10% of average revenue, for exchanges that custody assets in-house
Custody	Quarterly reporting of wallet arrangements and addresses, stricter reconciliation of customer assets
Use of customer assets	Controls over how platforms use assets entrusted to them
Trading	Order-matching exchanges barred from trading for their own account, including certain affiliates
Records	Seven years of trading records

Why the capital rule stands out

The biggest headline is the A$14 million capital floor. It applies to the highest-obligation tier: operators that keep customer assets in-house, rather than using qualifying third-party custodians.

The logic is simple. If an exchange holds your coins itself, it needs a strong financial cushion in case something goes wrong.

Overseas custody would still be allowed, so exchanges could keep using international service providers rather than storing everything in Australia.

Stopping exchanges trading against their users

One of the most practical changes for everyday traders is the proposal to stop exchanges that match customer orders from trading for their own account. The restriction would also extend to certain affiliates.

In plain terms, the platform running the order book should not also be on the other side of your trade.

The timeline

Nov. 27, 2026: consultation submissions close
March 2027: final guidance expected
April 2027: the new regime begins
Oct. 7, 2027: existing operators must apply for authorisation

ASIC has already received more than 140 applications, a sign that many platforms are preparing for the new rules.

What's next

ASIC will review feedback before publishing its final standards in March 2027. For exchanges, the next year is about getting ready: building capital, tightening custody and cleaning up how they trade. For users, the goal is simple: safer platforms and clearer protection for the money you leave on them.

Disclaimer: This article is for information only and is not financial advice. Crypto assets are volatile and can lose value. Always do your own research before making any investment decision.