Is Crypto Legal in Australia?

Is Crypto Legal in Australia?

ByNoah Smith

Are cryptocurrency transactions lawful in Australia?

Yes, cryptocurrency is legal within Australia. It means that anyone is free to purchase and sell, invest in, or store cryptocurrency in the country. However, it’s not legal as a form of currency. Although Australians have the right to make use of cryptocurrency, this doesn’t mean that Australian companies are required to accept it.

What are the most important laws?

The Australian government is a defender of digital currencies and has created a regulatory system to regulate the use of these currencies. The regulation of cryptocurrency exchanges is in Australia, and, as per the Anti-Money Laundering and Counter Terrorism Financing Act of 2006, companies that offer services for digital currency exchange are required to register in the Australian Transaction Reports and Analysis Centre (AUSTRAC) and adhere to the applicable obligations, such as the identification of customers and reporting obligations.

Other laws that govern the crypto industry within Australia comprise:

Corporations Act 2001 (Cth): Regulates crypto assets that are categorized as financial products that require compliance with licensing, disclosure, and conduct requirements for those who deal with these assets.

National Consumer Credit Protection Act 2009 (NCCP Act): Applies to the lending and credit of cryptos that require the relevant entity to possess an Australian credit license, or have it exempted.

The regulations for cryptocurrency are set on a national level in Australia, which means that obligations are identical across the states and territories of the nation.

Who is responsible for crypto regulation in Australia?

The year 2025 is the date Australia will have two major authorities that oversee or regulate the various aspects of the use of digital assets that affect the virtual asset services (VASPs)–or digital asset services providers (DASPs) as they are commonly known in Australia. The agencies that are part of the regulatory framework for crypto in Australia comprise:

  • Australian Securities and Investments Commission (ASIC)–ASIC’s regulation is restricted to the activities that involve financial services and products, as defined by the Corporations Act 2001. It means that not all cryptocurrency-related assets and services will automatically fall under the jurisdiction of ASIC. Only those that fit what is legally considered to be a “financial” product. This includes stablecoins that are tokenized financial instruments and certain custody and security services. DASPs that provide services related to financial products must be holders of the Australian Financial Services Licence (AFSL).
  • Australian Transaction Reports and Analysis Centre (AUSTRAC)–AUSTRAC regulates the digital currency exchange companies (DCEs) in accordance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. This means that in 2025, only DCEs who exchange crypto and fiat are required to sign up with AUSTRAC. Beginning March 31st, 2026, AUSTRAC’s regulatory reach will increase to encompass all DASPs.

Who is affected by Australian cryptocurrency laws?

Australian Financial Services Licenses

Companies that operate in Australia must apply for the Australian Financial Services Licence (AFSL) for activities that involve either financial goods or services as defined in the Corporations Act 2001. ASIC is announcing that numerous crypto-related activities are covered by current financial laws that require the use of an AFSL. A crypto-related business could be required obtain an AFSL for any of the following actions:

  • Dealing or issuing financial products, like:
    • Managed investment schemes. If a crypto asset involves pooling funds of investors to earn yields, it can be categorized as a managed investment program.
    • Securities: Tokens that grant rights similar to shares, like ownership, voting rights, or profit-sharing, can be classified as securities.
    • Crypto derivatives that draw their worth from the underlying assets and are subject to agreements to purchase or sell them at a future date can be classified as derivatives.
    • Non-cash payment options, such as stablecoins or other cryptocurrency assets that are used to make payments that don’t require physical cash, can fall under this category.
  • Custodial or Depository Services: storing financial assets or products on behalf of customers.

ASIC insists that the categorization of a cryptocurrency asset as a financial asset is contingent on its features, along with the privileges it grants holders, not the name or technical features. Thus, a thorough study of each cryptocurrency asset and its associated activities is required to determine the licensing requirements.

Then, in December of 2024, ASIC issued Consultation Paper 381, which proposes changes to Information Sheet 225 to provide clearer guidelines regarding how the laws governing financial services pertain to digital assets. The new guidance is intended to assist crypto-related businesses with understanding the obligations they have, and to determine whether they are required to obtain an AFSL. A final edition of revised Information Sheet 225 is expected to be released by mid-2025.

AUSTRAC registration

According to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), the company that offers the online money exchange service has to register with AUSTRAC. Particularly, this means the exchange of fiat currency into digital currency, and the reverse.

This is applicable to both physical and online places, such as crypto ATMs of digital currency exchange services (DCEs).

AUSTRAC offers the web-based tool to assess the need to register.

Furthermore, AUSTRAC is in the process of completing the new rules for AML/CTF The changes are to be implemented in March 2026. The scope of the regulated cryptocurrency operations that are permitted in Australia is anticipated to include:

  • Exchange of one digital currency for another
  • Digital assets are transferred on behalf of customers
  • Custody or the management of digital assets
  • Financial services that are related to the selling or issuance in digital currency (e.g. or Icos)

This framework aligns Australia’s AML/CTF framework to FATF (Financial Action Task Force) international standards.

There are key distinctions that distinguish AUSTRAC and AFSL at the time of June 2025:

AUSTRAC:

  • Special Focus: Counter-Money Laundering and Counter-Terrorism Finance (AML/CTF)
  • It is mandatory for DCEs.

ASIC (AFSL):

  • Special Focus: Financial products and services regulated under the Corporations Act
  • Only applicable to certain products (e.g., tokenized securities and derivatives).

The upcoming crypto regulatory reforms (2025-2026)

Reform Scheduled Date Summary

Digital Asset Platform (DAP) Licensing Framework Mid-2025 New licensing rules for crypto exchanges, as well as a few custodial platforms, which require the use of an Australian Financial Services Licence (AFSL) and conformity with the financial obligations.

Payment Stablecoin Regulation Mid-2025 Non-interest-bearing stablecoins that are backed by fiat are classified as NCPFs (these could be classified in the category of payment instruments) and subject to AFSL obligations that are similar to those of storage-value facilities.

ASIC Crypto Guidance (INFO 225) Update Mid-2025 New guidance for how the current law governing financial services applies for digital assets which includes licensing requirements.

CTF and AML Changes (Including The Travel Rule) March 31 2026 . The AML/CTF requirements will be widened to include more DAPS. This will also include Travel Rule implementation.

Crypto Asset Reporting Framework (CARF) Implementation In 2027, Australia plans to implement CARF of the OECD, which allows tax authorities to exchange and collect information about crypto-asset transactions.


Do Australian banks accept crypto?


No, Australian banks do not “accept” crypto in the way they accept dollars.

However, most banks will allow you to:

  • Receive money (AUD) from a registered crypto exchange.

  • Send money (AUD) to a registered crypto exchange, but with significant restrictions.

These restrictions are a direct response to the high volume of crypto-related scams. So you can buy and sell crypto but with restriction.


As of 5:39 PM (AWST) in Perth on November 11, 2025, $100 AUD will get you approximately 0.000619 BTC.

This is based on the live market price, where 1 Bitcoin is currently worth about $161,513 AUD.


Yes, you do pay tax on crypto in Australia.

The Australian Taxation Office (ATO) does not treat cryptocurrency as regular currency or foreign currency; instead, it classifies crypto as property or an asset.

This means that almost all activity involving crypto is a taxable event, primarily falling under Capital Gains Tax (CGT), but sometimes as Income Tax.

The ATO uses data-matching programs to track crypto transactions. You are required to keep detailed records of every single transaction for at least five years, including the date, the AUD market value at the time, and the purpose of the transaction.

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