The consultation follows Parliament’s passage of digital asset legislation in April, with Australia’s securities regulator now proposing capital, custody and trading standards for crypto platforms.

Update (Oct. 15 at 5:35 am UTC): This article has been updated to include a comment from Thomsons partner Liam Hennessy.

Australia’s securities regulator opened consultation Thursday on proposed capital, custody and trading requirements for crypto platforms, as it prepares to implement legislation passed in April that expands oversight of the industry.

The proposals include three alternative capital models, restrictions on platforms trading for their own account and quarterly reporting of wallets holding customer assets. ASIC also proposes allowing offshore custody while seeking feedback on safeguards if an overseas parent or related company fails.

“Our proposed guidance and standards acknowledge the increasing role of digital assets and tokenization, including in traditional parts of the financial system,” said ASIC Commissioner Alan Kirkland.

The proposed guidance and standards would give crypto operators greater clarity on requirements to obtain a license, safeguard customer assets and meet financial requirements under the new framework. The consultation follows Parliament’s passage of the Corporations Amendment (Digital Assets Framework) Act earlier this year.

“ASIC’s release of CP 392 is an important milestone for Australia’s digital asset industry,” Amy-Rose Goodey, CEO of the Digital Economy Council of Australia, told Cointelegraph. “After years of engagement on regulatory reform, it’s encouraging to see the focus shift towards practical implementation.”

OKX Australia CEO Shange Chandra also welcomed the proposals, saying they could drive industry consolidation.

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