ASIC consults on standards and guidance for new digital asset laws

Where things stand

On 15 October 2026, ASIC released Consultation Paper 392 Digital asset law reform implementation: Proposed standards and guidance (CP 392), outlining its proposed approach to implementing the Corporations Amendment (Digital Assets Framework) Act 2026 (Cth) (DAF Act).

The DAF Act creates two new financial products: digital asset platforms (DAPs), under which an operator possesses digital tokens on behalf of clients, and tokenised custody platforms (TCPs), under which an operator holds underlying assets (such as gold or other digital tokens) and issues digital tokens representing rights to those assets. For an overview of the new products and core operator obligations, see our article.

The consultation package comprises:

• new draft regulatory guide on DAPs and TCPs (Draft RG)
• draft asset-holding standards under section 912BE of the Corporations Act 2001 (Cth) (Corporations Act)
• draft transactional and settlement standards under section 912BF of the Corporations Act
• a draft instrument setting out financial requirements for DAP and TCP operators.

The package delivers the standards and guidance foreshadowed in ASIC's April 2026 roadmap – see our article. ASIC has also published a user guide to help stakeholders navigate the package. The draft instruments are preliminary and illustrative only, and ASIC has flagged that their final form may change considerably. The package also refers to regulatory design work being developed by government in parallel, including anticipated regulations that remain subject to government processes.

Guidance and licensing

ASIC proposes a single, dedicated regulatory guide for DAPs and TCPs, covering the application of the regime, the new Australian financial services licence (AFSL) authorisations, a catalogue of general AFSL obligations (cross-referring to existing guidance) and specific operator obligations, including the new DAP/TCP Guide and platform rules. ASIC intends that INFO 225 will remain the primary guidance on whether digital assets themselves are financial products (see our article).

The draft regulatory guidance includes the following:

• Business model-based authorisations: ASIC sets out new issue authorisations aligned to DAP and TCP business models (eg custody-only, agent, principal and TCP operator) plus separate authorisations for related services such as advice and dealing. Operators may need more than one new authorisation and cannot issue a DAP or TCP as a corporate authorised representative or rely on the authorised intermediary exemption (other than for related bodies corporate).
• Operator obligations: ASIC provides guidance on obligations that apply specifically to DAP and TCP operators, including adequate platform rules and, for retail clients, a DAP/TCP Guide and a voting policy. The DAP/TCP Guide can be combined with an operator’s Financial Services Guide, and an updated Guide only needs to be sent to existing clients if the change is materially adverse.
• New exemptions: ASIC sets out guidance on the new licensing exemptions, including for low-value DAPs, limited advice and arranging, third-party asset-holding arrangements, overseas issuers and clients, overseas related bodies corporate and joint ventures, and nominee companies.
• Public list of applicants: ASIC is considering publishing a list of firms that apply for, or vary, an AFSL by 7 October 2027.
• Transition: ASIC intends to publish separate, temporary guidance for existing licensees adding DAP or TCP authorisations during the April to October 2027 transition period, and a transitional approach to organisational competence that will consider relevant regulated and unregulated experience.

Asset holding standards

As indicated in ASIC's April 2026 roadmap (see our article), the proposed asset-holding standards are principles-based and modelled on existing custody regimes (eg, for investor directed portfolio services (IDPS), custodial and depository services, responsible entities and managed discretionary accounts). The standards would require DAP and TCP operators to, among other things:

• hold underlying assets on trust, under Division 3 of Part 7.8 of the Corporations Act, or under an alternative arrangement that complies with certain conditions including ensuring that the arrangement is legally effective and provides reasonably effective protection on insolvency
• identify, safeguard and segregate underlying assets and money, with additional requirements for pooled holdings (including daily reconciliation and correcting any shortfall within two business days)
• only use underlying assets (eg, for staking or lending) with clear disclosure and the client's express authorisation, without making participation a condition of holding an account, and indemnify clients for losses caused by negligent or unauthorised use
• remain responsible for third-party custodians and sub-custodians, including through due diligence, monitoring and written agreements
• keep records of wallet structures and addresses for at least seven years and report wallet and address information to ASIC quarterly (but not private keys or seed phrases).

ASIC does not propose requiring domestic custody but is seeking views on whether local operators should have emergency access to private keys if an overseas parent fails.

The standards would operate concurrently with the existing client money and client property provisions in Part 7.8, without broad relief, although ASIC is considering further guidance on mixed and unidentified money and on alternative holding arrangements.

Transaction and settlement standards

The proposed transactional and settlement standards would apply proportionately depending on the DAP's business model, for example, acting as agent, as principal counterparty or as a neutral trading venue (order book or request for quote). ASIC expects most DAP operators to be caught, and compliance would be a core obligation for breach reporting purposes. Key proposals include:

• Core obligations: seven-year record-keeping requirements, adequate arrangements to accept client instructions, requirement to ensure efficiency and integrity of transitional and settlement functions, fair, orderly and transparent order matching, fair and effective settlement arrangements and best execution requirements (including access to at least two liquidity sources), subject to exceptions for tied brokers and dealers and principal counterparty models.
• Asset admission and conflicts: controls for assessing, admitting, monitoring and removing tokens, a prohibition on principal trading by order matching DAPs and their related bodies corporate (subject to exceptions for tied brokers and dealers, agency trading and principal counterparty models), arrangements to manage conflicts relating to self-issued tokens and a prohibition on shelf space fees.
• Transparency: disclosure of material changes to platform rules, real-time, free pre-trade (for order books) and post-trade information, public disclosure of fees and of liquidity support providers, with enforceable written agreements and ongoing monitoring required for market makers. DAP operators that order match must make certain trading information available for free.
• Misconduct: requirement that platform rules must prohibit trading misconduct and operators must implement monitoring and controls backed by publicly disclosed intervention rights (including to cancel orders and reverse transactions). Operators would be required to notify ASIC where a client is suspended or terminated for suspected misconduct.

The standards adapt existing market and dealing obligations to DAP business models. The standards would not apply to custody-only DAPs, most TCP operations or transactions in tokenised tangible property and certain tokenised derivatives that are not financial products.

Financial requirements

All licensees providing financial services in relation to DAPs and TCPs would be subject to usual solvency and positive net assets requirements and, where relevant, surplus liquid funds requirements. DAP and TCP operators would also be required to comply with tailored cash needs and audit requirements aligned with those for IDPS operators, plus a net tangible assets (NTA) requirement. ASIC is consulting on three NTA models:

Each model includes the same concession for operators who use a third-party custodian for all underlying assets, and thresholds would be indexed annually to the consumer price index.

Broader proposals

Beyond DAPs and TCPs, ASIC proposes to update INFO 225 with guidance on public digital token infrastructure, certain wrapped tokens and custodial staking arrangements, building on the exemptions introduced by the DAF Act. ASIC also proposes that all AFSL holders be prevented from using ‘restricted stablecoins’ (being stablecoins issued, held or possessed by the licensee, its associates or entities under common control) to meet NTA requirements. Independently issued stablecoins held by a third-party custodian may still count if they meet the cash or cash equivalent definition.

What’s next

Submissions close at 5pm (AEDT) on 27 November 2026. ASIC expects to publish final instruments and guidance in March 2027, ahead of the DAF Act commencing and licence applications opening on 8 April 2027. Firms currently operating a platform that will be a DAP or TCP must apply for a licence or variation by 7 October 2027 to continue operating while their application is assessed.

Platform operators, custodians and existing AFS licensees should use the consultation period to map their business models against the proposed authorisations, test their custody and trading arrangements against the draft standards, and model their capital position under each NTA option.