CandleFocus

ASIC Tightens Grip on Crypto Custody in Major Rule Overhaul

Author: Content Editor
The Australian Securities and Investments Commission (ASIC) has released updated guidelines for financial services firms that hold client assets, with a focus on strengthening oversight of asset holders and introducing new requirements for cryptocurrency custody. The new guidelines, known as Regulatory Guide 133 (RG 133), expand the scope of asset-holding requirements to address emerging risks in digital assets and reinforce traditional custody standards. Key changes include the need for asset holders to establish and maintain business continuity arrangements, implement robust security protocols for cryptocurrency custody, conduct thorough evaluations of crypto exchanges used, and adhere to AML/CTF Act requirements. This update follows ASIC's recent release of a consultation paper and shows the regulator's ongoing efforts to enhance regulatory oversight in the cryptocurrency industry.

Related News