Australia’s corporate regulator has opened consultation on new rules that will bring digital asset platforms and tokenised custody providers under the country’s financial services licensing regime from April 2027.
The Australian Securities and Investments Commission, or ASIC, has proposed standards covering how digital assets are held, how trades are settled and how much financial backing platform operators must maintain.
The changes are part of the Corporations Amendment (Digital Assets Framework) Act 2026, which creates a formal regulatory structure for businesses that hold digital tokens or tokenised assets on behalf of customers.
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Crypto Platforms Will Need Financial Services Licences
Under the new framework, operators of digital asset platforms and tokenised custody platforms will generally need to hold an Australian Financial Services licence or obtain the appropriate authorisation.
ASIC says companies may also be required to provide customer disclosure documents and clear platform rules.
The regulator is proposing specific standards covering asset custody, transactions, settlement and financial resources.
That means companies will have to show not only that they can run a trading platform, but also that customer assets are held securely and that the business can meet its financial obligations.
ASIC is also considering a streamlined process for firms that already hold an Australian Financial Services licence.
The aim is to avoid forcing existing regulated businesses to start the licensing process from the beginning.
The regulator says more than 140 applications have already been received from businesses seeking permission to provide digital asset-related financial services.
What Tokenised Custody Actually Means
Tokenisation involves representing ownership of a real or financial asset using a digital token.
For example, a company might hold an underlying asset such as a bond, fund interest or other investment and create digital tokens representing a customer’s entitlement to that asset.
A tokenised custody platform then holds or records those underlying assets for clients.
This is different from simply buying a cryptocurrency such as Bitcoin.
The token may represent an existing asset rather than functioning as an independent digital currency.
Australia’s new rules are designed to bring these platforms closer to the regulatory standards already applied to traditional financial services.
ASIC says its guiding principle is “same activity, same risk, same regulatory outcome”.
In practical terms, that means a company should not avoid financial regulation merely because the asset or transaction is recorded using blockchain technology.
New Rules Cover Custody, Settlement and Financial Strength
ASIC’s consultation package proposes several layers of protection.
Platform operators would need to meet standards for how customer assets are held and protected.
The regulator also wants rules governing how trades are processed and settled.
Settlement refers to the final transfer of money and assets after a transaction takes place.
If a customer buys a digital token, the platform needs systems ensuring that the token reaches the buyer and the payment reaches the seller correctly.
Failures at this stage can create losses even when the original trade appears to have been completed.
ASIC is also proposing net tangible asset requirements.
These rules would require operators to maintain a minimum level of financial resources rather than relying entirely on customer money or volatile digital assets.
The intention is to give companies a financial buffer if they experience operational problems, losses or unexpected withdrawals.
Australia Moves Crypto Closer to Mainstream Finance Regulation
Australia has been gradually tightening its approach to digital assets.
Existing financial services laws already apply to some crypto products, particularly where tokens behave like traditional investments.
But the sector has long faced uncertainty over which platforms need licences and what standards apply to custody and trading.
The Digital Assets Framework Act is intended to reduce that uncertainty.
The law passed Parliament in April 2026 and gives the industry around a year to prepare before the new regime starts.
ASIC has already used transitional arrangements to allow businesses time to adjust.
The regulator has also been working with the Reserve Bank of Australia and other agencies on tokenised financial markets, including Project Acacia.
That project examined how digital money and tokenised assets could be used in wholesale financial markets.
The broader strategy suggests Australia is not trying to block digital assets.
Instead, regulators are attempting to bring them inside the same supervisory system used for other financial products.
Consultation Could Shape Final Industry Requirements
ASIC’s current proposals are not yet final.
Businesses, investors and other stakeholders can submit feedback until November 27.
The regulator may change the standards before the new rules take effect.
That consultation period will be closely watched by crypto exchanges, fintech companies, custody providers and traditional financial institutions moving into tokenised assets.
The key debate is likely to be how much compliance burden smaller firms can absorb while still providing strong customer protection.
Too little regulation could leave investors exposed if a platform fails.
Too much complexity could make it difficult for smaller firms to compete.
ASIC says its objective is to balance innovation and investment with the level of protection Australians expect from regulated financial services.
What this means for you:
Australians using digital asset platforms could eventually receive protections closer to those available with traditional financial services. Platforms may also face stricter licensing, custody and financial requirements before they can hold customer assets.
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