Australia's financial markets regulator is looking to impose tougher rules on cryptocurrency exchanges that operate in the country.
The Australian Securities and Investments Commission (ASIC) has proposed new standards for crypto exchanges and digital asset custodians.
The rules outline how companies must protect customer funds, execute trades, and meet financial requirements under laws that take effect next year.
The regulator says that its proposals mark the next step in Australia’s efforts to bring crypto businesses under the same regulatory framework as traditional financial firms and stocks.
Australia joins the European Union (EU), Singapore, and Hong Kong, which have also introduced new crypto regulations to govern the industry and digital assets.
In announcing its new regulations, the Australian regulator pointed to the 2022 collapse of the FTX crypto exchange, which left 30,000 Australian customers unable to access their money.
More recently, Cryptopia, a crypto exchange based in neighboring New Zealand, went bankrupt after a major cyberattack on its platform.
Australia’s new rules for crypto exchanges will take effect on April 8, 2027. Crypto firms already operating in the country have until Oct. 7 of the next year to apply for a license and comply.
For Australian investors, the changes mean clearer rules on how exchanges hold their assets, execute orders and handle conflicts of interest.
Going forward, platforms could be subject to standards covering the separation and safeguarding of customer assets, trading transparency, and settlement procedures.
The proposed trading rules also address market manipulation, conflicts of interest, and how exchanges handle customer orders.
Bitcoin (BTC), the largest cryptocurrency by market capitalization, is trading at $80,750 U.S. on Oct. 15.
