Crypto Exchanges Face Tougher Rules in Australia as Regulatory Deadline Approaches

Australia’s financial regulator is pushing for stricter rules governing cryptocurrency exchanges and digital asset custodians, aiming to strengthen customer protections, improve trading standards and reduce risks to the country’s financial stability.

The Australian Securities and Investments Commission (ASIC) has proposed a new set of requirements detailing how crypto companies should protect customer holdings, execute transactions and maintain adequate financial resources under legislation due to take effect in 2027.

ASIC announced on Thursday that it had opened a consultation on the proposed standards. Affected businesses would be required to obtain the necessary regulatory licenses or update their existing approvals to comply with the framework. The consultation will close on November 27, with final guidance and standards expected in March 2027.

The proposals are part of Australia’s broader effort to bring digital asset businesses under rules similar to those applied to conventional financial institutions. Parliament passed the legislation in April, following regulatory developments in the European Union, Singapore and Hong Kong, where dedicated frameworks for the crypto sector have already been introduced.

The move comes after several high-profile industry failures highlighted the risks faced by cryptocurrency investors. FTX’s collapse in 2022 left approximately 30,000 Australian customers unable to access their funds. In 2019, New Zealand-based exchange Cryptopia also collapsed after suffering a major hack.

The new regulatory framework is scheduled to take effect on April 8, 2027. Crypt