The industry can submit feedback until November 27, after which the digital asset licensing framework will come into effect in April 2027. The proposals are outlined in Consultation Paper 392. They address client asset protection, trading practices, and financial resource requirements. The regulator plans to publish final recommendations in March 2027.
The Corporations Amendment (Digital Assets Framework) Act 2026 introduces two regulated categories: digital asset platforms and tokenized custody platforms. Companies will need an Australian Financial Services (AFS) license or an amendment to an existing license. Exceptions may apply to certain schemes. The framework comes into effect on April 8, 2027, the same day new applications open. Existing operators must submit an application or request a license amendment by October 7, 2027, and during the transition period, they can continue operations under certain conditions. ASIC has already received over 140 applications related to digital assets, more than 110 of which were during the temporary relief period from October 2025 to September 30, 2026.
Commissioner Alan Kirkland described the regulator's approach as the principle of 'same activity, same risk, same regulatory outcome'.
ASIC proposed three models for net tangible asset requirements. The first model requires platforms without qualified third-party custody to have a minimum of 14 million Australian dollars (A$14 million) or 10% of average revenue, whichever is greater. For operators meeting third-party custody conditions, the threshold is lower. The second model introduces a separate threshold of A$7 million for operators not holding underlying assets related to financial products. The third model suggests a base of the greater of: A$2 million, a percentage of underlying assets, or 10% of revenue, plus surcharges: A$500,000 for agents, A$750,000 for neutral trading venues, and A$1 million for platforms trading directly with clients. The final model has not been chosen and may change after discussions.
This material is prepared solely for informational purposes and does not constitute financial advice or a recommendation.