Australia Prepares a 14 Million AUD Capital Rule Amid Intensifying Crypto
Australia has unveiled new standards for cryptocurrency exchanges and token custodians. The proposals, aligned with the Corporations Amendment (Digital Assets Framework) Act 2026, aim to integrate digital assets more deeply into the traditional financial system while protecting consumers.
Breaking news
Bitcoin’s $100,000 Target Falters as $939 Million Liquidation Wave Drives Price Toward $78,000
Bitcoin Surges Past $82,000 After Brief Dip Below $80,000
Russia Tightens Crypto Rules, Banning Self‑Custody Withdrawals
Bitcoin Drops Below $80,000 as US Producer Prices SurgeUnder the Financial Services and Investment Regulation, any affected business must obtain an Australian financial services licence or an additional authorisation based on an existing licence. ASIC Commissioner Alan Kirkland said the rules recognise the growing role of digital assets and tokenisation across finance.
Regulatory Framework and Licensing Requirements
ASIC’s Consultation Paper 392 presents three capital models. The first model requires non‑custodian operators to hold at least A$14 million in net tangible assets, or 10 % of average revenue, whichever is higher. Operators using qualified independent custodians may start at A$200 000.
The second model lowers the threshold to A$7 million for platforms holding only non‑financial‑product assets.
Capital Requirements and Custody Controls
The third model sets an initial A$2 million requirement, with extra conditions on asset holdings, revenue and activities such as brokerage and market making.
All models demand that platforms place all underlying assets with qualified external custodians and secure written guarantees, typically supported by independent audit reports. Operators remain responsible for overseeing these arrangements, adding compliance obligations even when assets are held by another company.
Strengthening Custody Measures
ASIC proposes quarterly reporting on crypto wallet arrangements, stricter client asset reconciliation, and controls over the use of trust assets. Platforms must obtain explicit client consent before using underlying assets in permitted arrangements and maintain protections for client interests in insolvency.
The regulator suggests best‑execution requirements for certain intermediaries, including access to at least two adequate liquidity sources.
Trading Rules and Best Execution
Exchanges will face restrictions on acting as principals on their own platforms, with specified exceptions, and will be prohibited from accepting incentives that favour particular tokens.
ASIC also intends to prevent licence holders from counting certain stablecoins they issue, control, or hold for regulatory capital purposes, arguing such holdings may fail to meet capital adequacy.
