Australia’s New Crypto Rules Could Push Smaller Platforms Out

Australia’s crypto industry is moving into a stricter regulatory phase. ASIC Consultation Paper 392 sets out proposed guidance and standards for digital asset platforms and tokenised custody platforms ahead of the new regime commencing in April 2027, covering licensing, client assets, trading, settlement and financial requirements.

Peter speaks with Michael from StormRake about what the consultation means for exchanges, brokers and everyday Australian crypto users. They unpack AFSL applications, the cost of compliance, the gap between more than 300 AUSTRAC-registered entities and roughly 140 licence applicants, and whether smaller operators may leave the market.

The discussion also covers bank restrictions on crypto payments, privacy, peer-to-peer transactions, self-custody trade-offs and why both industry participants and consumers should engage with the consultation while the proposed standards can still be shaped.

Chapters:

0:00 Why Australia’s Crypto Industry Is Worried

1:28 What ASIC Consultation CP392 Changes

3:05 Exchanges, Brokers and Digital Platforms

4:26 April 2027 and AFSL Requirements

5:17 The Cost of Crypto Compliance

7:26 Consumer Protection or Tax Control?

9:53 Privacy and Peer-to-Peer Crypto

13:02 Who Is Driving the Regulation?