🇦🇺Australia

Custody Platform System Redesign and Integration Costs

2 verified sources

Definition

The Bill defines 'tokenised custody platform' as a facility holding digital assets for customers with specific segregation and disclosure obligations. Existing platforms may require significant backend restructuring, asset reconciliation, and new audit trails. Manual workarounds and parallel system operation during transition increase operational costs.

Key Findings

  • Financial Impact: AUD 40,000–120,000 (one-time system redesign and testing); AUD 10,000–25,000 (annual parallel system maintenance and manual reconciliation)
  • Frequency: One-time redesign (12-month transition period); recurring annual legacy system costs until full migration
  • Root Cause: Legacy system architecture incompatible with new custody regime; manual asset reconciliation between old and new systems; lack of pre-built compliance templates for tokenised custody

Why This Matters

The Pitch: Blockchain custody platforms in Australia incur AUD 40,000–120,000 in one-time system redesign costs and AUD 10,000–25,000 annually in dual-system maintenance. A unified regulatory reporting platform eliminates legacy system overhead and accelerates transition compliance.

Affected Stakeholders

Systems Engineers, Database Administrators, Compliance Operations, Product Managers

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

AFSL Licensing and Custody Framework Compliance Costs

AUD 30,000–80,000 (one-time licensing and system setup); AUD 5,000–15,000 (annual ongoing compliance reporting)

AUSTRAC Compliance Enforcement & Civil Penalty Exposure

LOGIC estimate: AUD $100,000–$5,000,000 per enforcement action (typical Australian civil penalty range for financial crime). Additional cost: 40–80 hours/month for manual KYC/transaction monitoring processes if not automated.

Customer Onboarding Delays & KYC Verification Bottleneck

LOGIC estimate: AUD $500–$5,000/month per 1,000 customers (lost fees from delayed onboarding + queue abandonment). Manual verification: 25–40 hours/week per 10,000 customer base.

Manual AML/CTF Compliance Program Administration & Transaction Monitoring

LOGIC estimate: 50–100 hours/month per compliance team (AUD $8,000–$20,000 monthly in FTE costs for manual monitoring + administration). Opportunity cost: Diverted compliance resources reduce capacity for new customer onboarding and product features.

AUSTRAC AML/CTF Non-Compliance Fines

AUD 222,000 civil penalty unit per breach (2024 rate); AUD 1M+ for serious non-compliance

Lost Deals from Slow Onboarding

20-30% client churn; 40 hours/month manual onboarding per team

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