Australia proposes banning crypto platforms from proprietary trading against customers and implementing stricter capital and custody requirements by 2027.
Regulation & Gov ·
Australia's financial regulator is advancing a proposal to prohibit cryptocurrency platforms from engaging in proprietary trading that pits them against their customers, alongside tougher capital and custody requirements set to take effect by 2027. The push aims to strengthen compliance standards for crypto exchanges as a licensing deadline approaches.
The restrictions target a core conflict of interest: platforms operating both as market intermediaries and principal traders. New capital reserves and custody safeguards would strengthen consumer protection and operational resilience in the sector. The 2027 timeline allows platforms a defined window to restructure trading operations and capital holdings to align with the rules.
It remains unclear whether the proposal will proceed unchanged through the regulatory process, how exchanges plan to adapt their business models, or whether additional enforcement mechanisms will accompany the rules. The full scope of capital and custody specifications has not yet been detailed in available reporting.