Australia to tighten rules for crypto exchanges from 2027

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Australia to tighten rules

Crypto exchanges will face higher capital requirements

One of the main changes involves financial resource requirements for cryptocurrency platforms. ASIC has proposed three alternative models for calculating minimum capital requirements, depending on a company's business model and how it stores customer assets.

Under one proposal, certain operators without qualifying third-party custody arrangements would need to maintain at least A$14 million in net tangible assets or 10% of their average revenue, whichever is higher. Lower thresholds, including A$7 million and A$2 million, are proposed for other categories of businesses.

Crypto exchanges would also be required to maintain detailed records of customer assets, provide greater transparency about trading activity, and introduce measures to prevent price manipulation. Additional requirements would address conflicts of interest and situations where platforms trade directly against their customers.

However, the regulator does not plan to ban the storage of digital assets outside Australia. Companies using overseas custody providers would instead need to manage the associated risks.

Final rules expected in March

The proposed requirements are currently open for public consultation. Market participants can submit their feedback until November 27, 2026.

ASIC plans to publish the final rules in March 2027. Before then, the regulator will review industry feedback and finalize requirements covering capital, asset custody, and trading operations.

How Australia regulates cryptocurrencies

Cryptocurrency companies in Australia are currently required to register with AUSTRAC, verify customer identities, and comply with anti-money laundering requirements. Since July 2026, rules requiring the sharing of information about the senders and recipients of cryptocurrency transfers have also been in effect. However, ASIC financial services licenses are not yet required for all crypto platforms, primarily applying to companies dealing with assets and services classified as financial products.

Compared with the European Union, Australia is still at an earlier stage of cryptocurrency regulation. The EU already has the Markets in Crypto-Assets (MiCA) regulation, which establishes common requirements for licensing crypto companies, asset custody, and investor protection. The transition period ended on July 1, 2026. In the U.S., regulatory oversight remains divided among several agencies, including the SEC and CFTC, which continue to develop rules for the crypto market. Australia's new requirements will therefore bring its regulatory framework closer to the European model.

As a reminder, Australia has warned about the risks of AI ownership becoming concentrated in the hands of major companies.

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