Australia Tightly Caps Crypto Exchanges with A$14 Million Capital Rule
Key Summary
Australia's securities regulator proposes stricter requirements for cryptocurrency exchanges and custodians to protect customer assets, execute trades, and maintain adequate financial reserves. The proposed changes, part of the Corporations Amendment (Digital Assets Framework) Act 2026, would require exchanges to hold at least A$14 million in capital or 10% of average revenue to continue operating, with smaller operators potentially facing significant costs. The overhaul aims to align Australia with comparable international jurisdictions while encouraging investment and innovation without weakening consumer protections.
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Background
The Australian Securities and Investments Commission (ASIC) has proposed tougher operating standards for cryptocurrency exchanges and custodians ahead of a new licensing regime next year. #
Proposed Changes
Under the Corporations Amendment (Digital Assets Framework) Act 2026, affected businesses must obtain an Australian financial services license or secure additional authorization under an existing license. #
Capital Requirements
Exchanges would need to maintain net tangible assets of at least A$14 million or 10% of average revenue, whichever is greater, to continue operating. #
Custody Requirements
Platforms would need to maintain adequate records, segregate client assets, disclose material custody risks, and establish controls against market misconduct. #
Trading Restrictions
Operators would face restrictions on trading against customers and requirements to assess tokens before listing them, potentially forcing operators to review existing trading arrangements and the assets available on their platforms.