Australia’s financial regulator announced new safeguard standards for cryptocurrency exchanges and digital asset custodians, setting out requirements for protecting customer funds, ensuring transparent trading and meeting financial thresholds. The rules will take effect on April 8, 2027, and firms operating in the country must apply for a license by October 7, 2027, to continue business while regulators assess their applications. The consultation period closes on November 27, with final guidance expected in March 2027.

The Australian Securities and Investments Commission (ASIC) opened the consultation on Thursday, outlining standards that would force affected firms to obtain or update their regulatory approval. The proposals are part of a broader effort to bring crypto businesses under the same regulatory framework as traditional financial firms, a move that follows legislation passed by Parliament in April. Australia now joins jurisdictions such as the European Union, Singapore and Hong Kong, which have introduced dedicated crypto regulations.

The initiative comes after the 2022 collapse of FTX left roughly 30,000 Australian customers unable to access their funds, and three years earlier, New Zealand’s Cryptopia exchange went bankrupt after a major hack. ASIC Commissioner Alan Kirkland said the approach is guided by the principle of "same activity, same risk, same regulatory outcome" to align Australia with comparable overseas jurisdictions.

Under the consultation paper, platforms would be subject to standards covering the separation and safeguarding of customer assets, trading transparency, settlement procedures and financial resources. The proposed trading rules also address market manipulation, conflicts of interest and how exchanges handle customer orders. ASIC reported more than 140 applications from businesses seeking authorization to provide digital asset‑related financial services. Stablecoins used for payments are being addressed separately through Australia’s payment services reforms.