Australia's ASIC Seeks Input on Capital and Custody Rules for Crypto Firms - TOKENPOST

Australia's securities regulator, ASIC, has opened a consultation on proposed capital and custody requirements for crypto firms, signalling a shift from enforcement-led oversight toward formal rulemaking for the sector. The consultation invites industry feedback on how much capital firms should hold and how client assets should be safeguarded — two areas regulators globally view as central to consumer protection.

The custody question matters because crypto firms often hold customer assets directly rather than through a segregated, regulated intermediary. Capital rules, meanwhile, determine how much of a firm's own money stands behind potential losses. Together, they shape who can operate sustainably and at what cost.

For markets, the practical relevance is timing and clarity. A defined consultation process gives firms a window to influence final rules, while signalling that Australia intends a structured licensing regime rather than ad hoc action. What to watch: the consultation's closing date, the specific capital thresholds proposed, and whether custody standards align with approaches in other major jurisdictions. Firms weighing Australian expansion may delay decisions until the framework firms up.