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ASIC Releases 18-Month Roadmap for Australia’s New Digital Asset Framework: What AFSL licensees Need to Know

If your business or your clients operates a digital asset platform, provides crypto-asset custody services, or you simply want to stay ahead of Australia’s evolving regulatory landscape, this update is worth just a few minutes of your time.

 

On 20 April 2026, the Australian Securities and Investments Commission (ASIC) released the implementation roadmap for the Corporations Amendment (Digital Assets Framework) Act 2026 ("DAF Act"), setting out the regulatory timetable for the next 18 months. This release marks the transition of Australia's digital asset regulatory framework from legislative enactment to practical implementation.


Under the new regime, Digital Asset Platforms (DAPs) and Tokenised Custody Platforms (TCPs) will be brought within Australia's financial services licensing regime.


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1. Legislative Timeline

  • 1 April 2026 – The DAF Act was passed by Parliament

  • 8 April 2026 – The Act received Royal Assent

  • 9 April 2027 – The legislation will formally commence

 

Once the legislation takes effect, operators of DAPs and TCPs will be required to hold an Australian Financial Services Licence (AFSL). ASIC will become the licensing authority responsible for supervising and enforcing compliance across these regulated activities.


2. The 18-Month Implementation Roadmap: Four Key Phases

According to ASIC's implementation roadmap, the implementation process over the next 18 months can be broadly divided into the following four phases:


 

3. What Will the New Requirements Mean for AFSL Licensees?

The standards outlined above set the overall framework — but for platform operators, the practical implications extend well beyond simply lodging a licence application.


a. Asset Holding Standards (Section 912BE)

Consistent with the principles set out in Regulatory Guide 133 (RG 133), ASIC will require operators to establish robust arrangements covering:

  • segregation of client assets

  • trust arrangements

  • client withdrawal rights

  • reconciliation and reporting processe


A key point is that outsourcing custody functions to a third-party service provider does not transfer legal responsibility. Where an operator retains factual control over client assets, it will continue to bear the associated legal obligations. Simply relying on a third-party custody solution will not relieve an operator of its regulatory responsibilities. Accordingly, governance arrangements should be designed with this principle in mind from the outset rather than addressed retrospectively.


b. Transaction and Settlement Standards

The proposed standards focus on market integrity, best execution and settlement arrangements, with the objective of ensuring that digital asset platforms maintain the same fundamental standards of market conduct expected within Australia's traditional financial markets, regardless of the underlying technology.


c. Financial Requirements

Consistent with the approach adopted under Regulatory Guide 166 (RG 166), ASIC is expected to introduce requirements relating to:

  • liquidity (cash requirements)

  • net tangible assets

  • periodic auditor reviews

 

Once implemented, affected platforms are expected to undertake dedicated compliance reviews to demonstrate ongoing compliance with these financial requirements.



4. What Does This Mean for the Industry?

For operators currently relying on ASIC's INFO 225 no-action position, the regulatory relief originally scheduled to expire in June 2026 has now been extended until 30 September 2026. This extension provides businesses with additional time to assess whether their existing operations align with the forthcoming licensing framework, rather than waiting until the new regime commences.


Businesses intending to operate digital asset services in Australia over the longer term should begin considering:

  • whether an application for a new AFSL, or a variation to an existing AFSL, will be required;

  • whether current client asset segregation and custody arrangements align with the proposed asset holding standards;

  • whether existing financial resources, including liquidity and net tangible assets, are likely to satisfy the anticipated financial requirements; and

  • monitoring ASIC's forthcoming consultation papers and draft regulatory guidance.

 

5. Conclusion

Although the 18-month transition period may appear generous, the practical preparation time available to businesses is considerably shorter. In particular, AFSL applications often require internal governance changes, operational restructuring and external professional advice. Businesses should therefore begin preparations well before the formal consultation process concludes.


Recommended steps include:

Conduct an Initial Compliance Assessment

Determine whether your business falls within the definitions of DAPs or TCPs and whether you currently operate under the INFO 225 no-action position. If so, alternative compliance arrangements should be established before the relief expires in September.


Benchmark Against Existing Regulatory Principles

Assess current asset segregation arrangements, custody structures, liquidity management and net tangible assets against the existing principles set out in RG 133 and RG 166, identifying potential gaps against the forthcoming regulatory standards.


Monitor the Consultation Process

ASIC will invite industry feedback before the new standards are finalised. This consultation period gives businesses an opportunity to better understand ASIC's regulatory expectations and provide feedback on the final framework.


Plan Your Licensing Strategy Early

Whether applying for a new AFSL or varying an existing licence, businesses should begin preparing internal documentation, governance arrangements and responsible personnel well in advance to avoid delays once the licensing application window opens in April 2027.


For businesses involved in digital asset activities, identifying compliance gaps and developing an implementation roadmap now will provide a far smoother transition than waiting until the new regime formally commences.


Source of information: 


Disclaimer

This article reflects publicly available information regarding the exposure of draft legislation as at the date of publication and is general in nature. It does not constitute tax, financial, or legal advice and should not be relied upon without obtaining professional advice tailored to your specific circumstances. To discuss how these proposed changes may affect you or your business, please contact our advisory team at Wis Australia.


Liability Limited By A Scheme Approved Under Professional Standards Legislation.

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