The Australian Securities and Investments Commission has launched a comprehensive consultation on how it will implement the Digital Assets Framework Act, the law that formally brings many cryptocurrency trading platforms and tokenised custody services inside Australia’s financial services regime. ASIC published Consultation Paper 392 on 1 November 2026. The consultation package sets out draft regulatory guidance, proposed asset holding and settlement standards, and proposed financial requirements for operators of digital asset platforms and tokenised custody platforms. Submissions are due at 5pm Australian Eastern Daylight Time on 27 November 2026. Why this matters This consultation is the first substantive step from Australia’s principal corporate regulator to translate the Digital Assets Framework Act into executable supervisory rules and practical obligations for industry. The Act, passed earlier in 2026, created two new classes of regulated activity: Digital Asset Platforms, which hold digital tokens for clients and operate trading services, and Tokenised Custody Platforms, which record ownership of underlying assets as digital tokens. By publishing draft standards and guidance, ASIC is defining how those statutory categories will work in practice. The outcome will determine which businesses must hold an Australian financial services licence or vary an existing licence, how customer assets must be held and reconciled, and what controls and capital are expected from operators. For exchanges, custodians and institutional entrants, the consultation is a hard deadline in a regulatory transition that will reshape market infrastructure and compliance costs. Key elements of the consultation - Draft regulatory guide. ASIC has published a draft Regulatory Guide intended to clarify the perimeter of the new framework, describe licensing pathways and set out disclosure expectations for operators. The guide aims to provide certainty about when a platform will be treated as a regulated Digital Asset Platform or Tokenised Custody Platform. - Asset holding and settlement standards. ASIC proposes specific operational and record keeping standards for custody arrangements, including segregation and reconciliation requirements, transaction and settlement rules, and obligations for custody technology that records and moves tokenised positions. - Financial requirements. Draft proposals include minimum financial and prudential measures for licensees, designed to ensure platforms maintain sufficient liquidity and capital in the event of operational stress or customer loss. - Transition and licensing timelines. The consultation reiterates implementation dates that the regulator and government set earlier in the reform timetable. Operators that will be classed as DAPs or TCPs from the law commencement date will need to align licensing and governance arrangements under set transition windows that ASIC has signalled in the paper. Regulatory intent and balance ASIC frames its approach around the principle of same activity, same risk, same regulatory outcome. That is, similar conduct should attract comparable regulation whether it occurs in traditional markets or on digital rails. ASIC says the aim is to protect consumers and investors while still preserving space for innovation and the tokenisation of financial markets. The regulator has signalled it will streamline some licensing procedures for firms that already hold Australian financial services licences, and that it will continue targeted stakeholder engagement through roundtables and industry events during the consultation period. Industry reaction and implications Legal and advisory firms and industry groups have already begun briefing clients and members, noting the consultation is wide ranging and will be consequential for business models that rely on novel custody architectures or decentralised settlement methods. Operators that have been operating under prior informal or no action positions will face concrete decisions about whether to seek full licence authorisations, vary existing licences, or change product designs to fit the new perimeter. Market participants will be watching three practical questions closely. First, how prescriptive will ASIC be about custody technology and segregation, given many custody solutions rely on software key management and multi signature architectures. Second, what level of financial buffers will be expected, and how those buffers will interact with existing prudential regimes for financial institutions. Third, how settlement and transactional standards will work with tokenised securities and with the established clearing and settlement infrastructure in Australia. Context in a broader reform program The consultation is part of a concentrated reform push across Australian regulators and government agencies to incorporate digital asset activity into mainstream financial regulation. The Reserve Bank has been exploring tokenised finance in wholesale markets and payments, and other agencies have advanced tax information reporting and anti money laundering expectations for the crypto sector. Those parallel programs mean ASIC is writing its guidance into a moving policy environment, and coordination with other agencies will be important to avoid regulatory gaps or duplicated obligations. What happens next The consultation closes on 27 November 2026. ASIC will review submissions and expects to finalise standards and guidance ahead of the framework commencement dates set by the Act. Firms affected by the reform should consider the consultation material now, prepare submissions if they wish to influence the final design, and begin planning licensing and compliance programs for the implementation timelines that ASIC describes. For many Australian crypto businesses and potential entrants, the consultation represents a shift from a largely permissive transition period into a structured licensing and supervision regime. The next two months will be a critical window for industry to shape the rules that will govern tokenised markets and digital asset custody in Australia.