2.2. Requirements for Digital Asset Trading Facility Operator authorisation
The AFSA may not grant authorisation or variation to operate a Digital Asset Trading Facility unless the applicant satisfies all of the following requirements:
(1) general authorisation requirements applicable to the applicant under the Framework Regulations and other applicable rules, and
(2) the applicant must ensure that it maintains at all times capital resources in the amount specified in Table 1 by reference to the activity that the Authorised Firm is licensed to conduct or, if it is authorised to conduct more than one such activity, the amount that is the higher or highest of the relevant amounts in Table 1.
Table 1
Regulated Activity |
Capital requirement (USD) |
Operating a Digital Asset Trading Facility |
The higher of (i) 200,000 or (ii) an amount equal to sufficient working capital in fiat currency to continue business for a period of 12 months, based on realistic forecasts for the business in different market conditions (both negative and positive scenarios) |
Providing Custody (in relation to Digital Assets) |
250,000 |
(3) In determining whether the Digital Asset Trading Facility Operator meets the capital requirement(s) and, in particular, has sufficient working capital to continue business on a go-forwards basis, the Digital Asset Trading Facility Operator must have regard to the following matters:
(a) the business carried out, or to be carried out by the Digital Asset Trading Facility Operator;
(b) the risks to the continuity of the services provided by, or to be provided by, the Digital Asset Trading Facility Operator, including any outsourced services (including services outsourced to a Group entity where applicable);
(c) the liabilities to which the Digital Asset Trading Facility Operator is exposed or could be exposed to, including as a result of any failure by any third party; and
(d) the means by which the Digital Asset Trading Facility Operator manages and, if the Digital Asset Trading Facility Operator is a member of a Group, by which other members of the Group manage, the occurrence of risk in connection with the Digital Asset Trading Facility Operator’s business.
Guidance
Intangible assets, including goodwill, cannot be used as part of determining whether the capital requirement value is met or whether the Digital Asset Trading Facility Operator has sufficient working capital, and must be disregarded when determining whether the requirements are met for the purposes of Table 1.