The Australian Securities and Investments Commission (ASIC) released consultation paper CP 392 on October 15, setting out detailed implementation proposals for regulating crypto platforms and opening a public consultation. The paper contains proposed standards and guidance for digital asset platforms (DAPs) and tokenized custody platforms (TCPs), including requirements for asset custody, trading and settlement, and financial resources. ASIC said it aims to establish standards consistent with the existing financial services regulatory framework under the principle of 'same activity, same risk, same regulatory outcome.'
The proposals cover the identification, segregation and protection of client assets, oversight of custodians, trading transparency, and management of conflicts of interest. The proposed financial requirements address liquidity, cash-flow forecasting and audits, as well as net tangible asset (NTA) requirements, with ASIC seeking feedback on several alternative NTA thresholds. The paper also provides implementation guidance for platform operating rules and the retail client guide required under the new law.
The Digital Assets Framework Act takes effect on April 8, 2027. Existing businesses newly brought within the regulatory framework may receive transitional relief from the amended provisions while their application is under review if they apply for an Australian financial services license (AFSL), or to vary an existing license, by October 7, 2027. This does not provide a blanket exemption from separate licensing obligations that already apply under existing law.
ASIC also proposed streamlining the process for existing AFSL holders and businesses that have applied for authorization under INFO 225 to add DAP- and TCP-related permissions. Comments are due by November 27, and ASIC plans to publish the standards and guidance in March 2027. It cautioned that the attached draft regulations are illustrative and may change substantially after consultation.