ASIC Opens Consultation on Australia’s Crypto Exchange Rules: What CP 392 Means

ASIC has opened consultation CP 392 on draft standards for crypto exchanges and tokenised custody platforms under Australia’s new Digital Assets Framework Act. Here is what’s proposed, the key dates, and what to watch.

Home » ASIC Opens Consultation on Australia’s Crypto Exchange Rules: What CP 392 Means

Quick answer: On October 15, 2026, Australia’s securities regulator, ASIC, opened a consultation (CP 392) on the draft standards that will govern crypto exchanges and tokenised custody platforms under the new Corporations Amendment (Digital Assets Framework) Act 2026. Submissions close at 5pm AEDT on November 27, 2026, and the new regime starts on April 8, 2027, according to ASIC’s media release. Firms must hold an Australian financial services licence, publish platform rules and customer disclosures, and meet standards for holding assets, trading and settlement. ASIC says it has already logged more than 140 applications from businesses wanting in.

This article is for information only. It isn’t financial, legal or tax advice. Do your own research (DYOR) and speak to a qualified professional about your situation.

Most crypto rulebooks arrive with a bang and a lot of confusion. This one is arriving in stages, with dates, and with a regulator openly asking the industry to mark its homework. That’s unusual enough to be worth a close read, whether you trade from Sydney, run a platform that serves Australians, or simply watch how other countries handle the same problem.

What did ASIC actually announce?

ASIC published media release 26-245MR on October 15, 2026, titled “ASIC consults on implementation of new digital asset laws.” The consultation paper behind it is CP 392, Digital asset law reform implementation: Proposed standards and guidance. It contains draft guidance, proposed standards and proposed financial requirements.

The paper sits on top of a law that’s already settled. The Corporations Amendment (Digital Assets Framework) Act 2026 (the DAF Act) passed Parliament on April 1, 2026 and received Royal Assent a week later, according to ASIC’s earlier implementation roadmap. What’s still open is the detail: how the new rules will work day to day.

The dates that matter:

  • October 15, 2026: consultation opens.
  • November 27, 2026 (5pm AEDT): consultation closes. Comments go to fintech@asic.gov.au.
  • April 8, 2027: the DAF Act’s new regime commences, per ASIC’s release.

One small wrinkle. A law firm summary of the roadmap (Hall & Wilcox) gives the start date as April 9, 2027, while ASIC’s October release and several outlets say April 8. We’ve gone with the regulator’s current release. If the exact day matters to your business, check ASIC’s site directly.

Two new product types: platforms and tokenised custody

The DAF Act doesn’t just bolt crypto onto the old rulebook. It creates two new categories of financial product.

  • Digital asset platforms (DAPs): arrangements where an operator holds digital tokens on behalf of clients and provides related platform services. Think of a typical exchange account where your coins sit with the exchange.
  • Tokenised custody platforms (TCPs): arrangements that record underlying assets held for clients as digital tokens. The thing in custody might be a real-world asset, and the token is the record of your claim on it.

Operators of either need an Australian financial services (AFS) licence. ASIC’s guidance also reaches beyond the platforms themselves, to other providers of services connected to these products, existing licensees, market participants and payments providers that deal in digital assets.

What the draft standards would require

According to ASIC’s release, the proposals fall into a few buckets.

  1. Asset-holding standards. How a platform looks after client assets. This is the part that speaks directly to the “not your keys, not your coins” worry.
  2. Transactional and settlement standards. How trades are executed and finalised.
  3. Net tangible asset (NTA) requirements, where relevant. A financial cushion that licensees must keep.
  4. Disclosure and platform rules. Customers get disclosure documents, and the platform publishes the rules it operates under.

CoinDesk, which covered the announcement the same day, adds that the trading rules touch on market manipulation, conflicts of interest and how exchanges handle customer orders. We couldn’t confirm those specific items in the pages of ASIC’s release we could read, so treat that detail as single-sourced until you’ve seen the consultation paper itself.

ASIC also proposes a streamlined licensing path for firms that already hold an AFS licence and for businesses that applied for authorisation under its earlier guidance, known as INFO 225. That matters for anyone who’s already knocked on the door.

The “same activity, same risk” principle

ASIC Commissioner Alan Kirkland framed the approach as “same activity, same risk, same regulatory outcome,” and said it aligns Australia with comparable overseas jurisdictions. He also said the proposals balance innovation, investment and growth with the protections Australians expect.

It’s worth pausing on that phrase, because it explains a lot. The idea is that a platform which holds client assets should face broadly the same outcome-based expectations whether the assets are shares, cash or tokens. Crypto doesn’t get a bespoke, looser rulebook, and it doesn’t get a punitive one either. If you’ve followed our coverage of Singapore’s stablecoin reserve proposals, you’ll recognise the pattern. Regulators in several financial hubs are converging on licensing first, product-specific standards second.

How we got here: a no-action period and a pile of applications

This didn’t start in October. In late 2024, ASIC consulted on updating INFO 225, its guide to how existing financial laws apply to digital assets, and floated a “no-action” approach for businesses actively working toward licensing. The updated guidance followed in October 2025, alongside a sector-wide no-action position.

That no-action period ran from October 2025 to September 30, 2026, after ASIC extended it in June 2026, according to Finance Magnates. During it, ASIC says more than 110 businesses applied in response to INFO 225. Add other applicants and the total passes 140.

That number tells you something. Firms don’t queue up for a licence they expect to lose money on. They do it when they believe the regime will be workable, and when the alternative is losing the Australian market.

A realistic scenario: the exchange operator in Melbourne

Imagine you run a small exchange out of Melbourne with a few thousand Australian customers. Until now you’ve operated in a grey zone, hoping your registration with AUSTRAC for anti-money-laundering purposes was enough, and keeping an eye on INFO 225.

The October consultation changes your to-do list. You’d need to work out whether your product is a digital asset platform, check how your custody arrangements stack up against the draft asset-holding standards, and see whether the NTA requirement applies to you. You’d also have a decision to make about whether to lodge a submission by November 27 to argue for changes. A short, specific submission about a rule you can’t practically follow is the sort of input regulators tend to read.

Now flip it round. You’re a customer on that exchange. Nothing changes tomorrow, and no exchange you use is about to be switched off because of this paper. But within a couple of years, the question “who actually holds my coins, and what happens if they fail?” should have a published, enforceable answer.

What this means if you’re an Australian crypto user

The honest answer is: not much immediately, plenty eventually. The consultation is a draft. Rules can change after feedback, and CoinDesk reports that final standards and guidance are expected around March 2027, shortly before the April start. That timing comes from a single outlet, so don’t treat it as an official calendar.

Here’s what to watch if you hold crypto on an Australian-facing platform:

  • Licence status. Over the next year, look for platforms to announce AFS licence applications or approvals. A platform that stays silent deserves a few questions.
  • Custody terms. Read where your assets are held and whether the platform says they’re segregated from its own funds.
  • Disclosure documents. The new regime is meant to put plain-language disclosure and platform rules in front of you. Read them when they appear.
  • Changes to product lists. Some platforms may drop tokens or services that don’t fit the new framework.

It also helps to remember the history behind these rules. CoinDesk’s coverage points to the 2022 collapse of FTX, which left about 30,000 Australian customers unable to access their money. That figure is from CoinDesk alone, but the broader lesson isn’t in doubt: custody failures are what regulators are trying to prevent.

What isn’t settled

  • Stablecoins. CoinDesk says stablecoins used for payments are being handled separately under Australia’s payment services reforms. ASIC’s release, as we read it, doesn’t address them. Whether and how they fit is a question for the final guidance.
  • The transition for existing firms. CoinDesk reports an October 7, 2027 deadline for existing firms to apply for a licence, with operations allowed to continue while ASIC reviews applications. A law firm summary describes a similar transition running from April to October 2027. The precise rules should be checked against ASIC’s final documents.
  • The final text. Everything above is proposed, not final.

How this compares with other regions

Australia is choosing licensing and standards, not bans. That puts it closer to the EU’s MiCA model than to the blunt access-blocking we covered when South Korea moved against 27 unregistered exchange sites. Both approaches share a goal: a clear list of who’s allowed to serve local customers.

The difference is the carrot. Korea’s tool is the door slamming shut on unregistered operators. Australia’s is a published route in, with a streamlined path for firms that have already applied. If you want to compare with a market that went through a similar process, our guide to crypto regulation in South Africa and what the FSCA requires sets out how licensing works there.

Other regulators made news the same week. Lowenstein Sandler’s October 15 newsletter noted that the US Office of the Comptroller of the Currency published its final debanking report on October 14, and that the EBA classified USDC as a significant e-money token under MiCA, with direct supervision starting November 12. Different jurisdictions, same direction of travel: regulators would rather supervise crypto than ignore it.

FAQ

What is ASIC CP 392?

It’s ASIC’s consultation paper on implementing Australia’s new digital asset laws. It sets out draft guidance, proposed standards and financial requirements for digital asset platforms and tokenised custody platforms.

When does the consultation close?

At 5pm AEDT on November 27, 2026. Submissions go to fintech@asic.gov.au.

When do Australia’s new crypto platform rules start?

ASIC says April 8, 2027. At least one law firm summary says April 9, so confirm the exact date with ASIC if it matters for compliance.

Do I need a licence to run a crypto exchange in Australia?

Under the DAF Act, operators of digital asset platforms and tokenised custody platforms need an AFS licence. Existing licensees and earlier applicants may get a streamlined route. Get legal advice for your own case.

Does this affect my Bitcoin or XRP holdings?

Not directly. The rules target the platforms that hold assets for clients, not the coins themselves. Your tax position is a separate matter, which our comparison of crypto tax rules covers in general terms.

Key Takeaways

  • ASIC opened consultation CP 392 on October 15, 2026, and it closes at 5pm AEDT on November 27, 2026.
  • The DAF Act creates two new product types, digital asset platforms and tokenised custody platforms, and requires an AFS licence to run either.
  • Draft standards cover asset holding, trading and settlement, and net tangible assets, with disclosure documents and platform rules for customers.
  • The regime is due to start on April 8, 2027, per ASIC.
  • More than 140 businesses have already applied for authorisation, according to ASIC.
  • These are proposals. Final standards may change after feedback.

Want more on how regulators are shaping where and how you can trade? Browse our latest regulatory explainers, and subscribe so you don’t miss the next one.

Sources

Disclaimer: This article is for information and education only. It isn’t financial, legal or tax advice. Regulations change quickly, and some details here come from secondary reports rather than the full consultation paper. Do your own research (DYOR) and consult a qualified professional before making decisions.

Leave a Reply

Your email address will not be published. Required fields are marked *

© Copyright 2026 FiscalFrontier
Powered by WordPress | Mercury Theme