Is Crypto Legal in Australia?

AUSTRAC is the AML/CTF regulator; since 31 March 2026 it registers virtual asset service providers, replacing digital currency exchange registration (AML/CTF Amendment Act 2024, No. 110, Schedule 6).

ASIC regulates digital assets that are financial products under the Corporations Act and ASIC Act, including licensing, disclosure and design and distribution obligations; its guidance is INFO 225 (updated October 2025).

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 governs crypto AML/CTF; from 31 March 2026 its digital currency exchange registration was replaced by virtual asset service provider registration (AML/CTF Amendment Act 2024, No. 110, Schedule 6).

The Corporations Act 2001 governs digital assets that are financial products, requiring AFS licensing, product disclosure and design and distribution obligations (ASIC INFO 225); the Digital Assets Framework Act 2026 (No. 38) amends it to add digital asset platforms and tokenised custody platforms from April 2027.

Virtual asset service providers register with AUSTRAC from 31 March 2026 (AML/CTF Amendment Act 2024, No. 110) and need an AFS licence for financial products; the crypto reform is enacted as the Digital Assets Framework Act 2026 (No. 38), commencing in April 2027.

Providing custody of digital assets that are financial products currently requires an AFS licence covering custodial or depository services (RG 133, RG 166); the Digital Assets Framework Act 2026 (No. 38) adds tokenised custody platforms as a new financial product (s 761GD) from April 2027.

Exchanges register with AUSTRAC for AML/CTF (virtual asset service provider registration from 31 March 2026) and need an AFS licence for financial products; ASIC enforces design and distribution obligations, with Bit Trade (Kraken) ordered to pay $8 million in December 2024 for issuing a margin product without a target market determination.

AUSTRAC administers the Anti-Money Laundering and Counter-Terrorism Financing Act 2006; since 31 March 2026 its regime covers virtual asset service providers, which must be registered on the Virtual Asset Service Provider Register (s 76B, inserted by Act No. 110, 2024).

Every reporting entity, including virtual asset service providers from 31 March 2026, must be entered on AUSTRAC's Reporting Entities Roll (AML/CTF Act s 51A as amended by Act No. 110, 2024).

Virtual asset service providers must both enrol on the Reporting Entities Roll (AML/CTF Act s 51A) and be registered on the Virtual Asset Service Provider Register (s 76B) under the AML/CTF Act as amended by Act No. 110, 2024 from 31 March 2026.

From 1 July 2026 lawyers, accountants, real estate agents and other newly regulated professions became subject to AML/CTF obligations under the AML/CTF Amendment Act 2024 (No. 110, 2024), Schedule 3 Part 4.

Since 31 March 2026 exchanges must register with AUSTRAC as virtual asset service providers (AML/CTF Act s 76B, as amended by Act No. 110, 2024), replacing digital currency exchange registration; exchanges dealing in financial products also need an AFS licence, and the Digital Assets Framework Act 2026 (No. 38) adds digital asset platforms from April 2027.

Holding digital assets that are financial products for clients is a custodial or depository service requiring an AFS licence, while a self-custody or self-hosted wallet product is unlikely to be one (ASIC INFO 225); ASIC extended omnibus-account relief to such digital assets in December 2025.

Crypto payment services have no dedicated licence: ASIC considers certain stablecoins likely to be non-cash payment facilities, so providing financial services for them may need an AFS licence (INFO 225), and Treasury's October 2025 exposure draft proposes payment service provider licensing covering stablecoin issuers.

AFS licensees in the digital asset sector must meet ASIC's base-level financial requirements in Regulatory Guide 166, with tailored requirements by authorisation; custodial providers must also meet a net tangible assets requirement, at least 50% of it held in cash or cash equivalents (INFO 225).

From 31 March 2026 the AML/CTF Amendment Act 2024 (No. 110, 2024) replaced AML/CTF programs with 'AML/CTF policies' (s 26F) and requires every reporting entity, including virtual asset service providers, to designate an AML/CTF compliance officer (s 26J).

AFS licensees offering digital asset products must also meet disclosure (PDS and FSG), design and distribution, internal and external dispute resolution and compensation requirements, and custodians must keep client assets separate from their own (ASIC INFO 225, RG 133).

AFS licence applications, including for digital asset businesses, are lodged through ASIC's Regulatory Portal, where an application can be saved as a draft and resumed before lodgement.

The Corporations Amendment (Digital Assets Framework) Bill 2025 was introduced on 26 November 2025, passed both Houses on 1 April 2026 and received assent on 8 April 2026 as Act No. 38 of 2026.

On 9 October 2025 the Assistant Treasurer released exposure draft legislation for payment service provider licensing, including a graduated framework for stored value facilities such as stablecoin issuers and wallets; submissions closed on 6 November 2025.

ASIC finalised its stablecoin and wrapped-token distribution relief on 7 December 2025 (ASIC Corporations (Stablecoin and Wrapped Token Relief) Instrument 2025/867 and Amendment Instrument 2025/871), also extending omnibus-account relief to digital assets that are financial products.

The Corporations Amendment (Digital Assets Framework) Act 2026 (No. 38) commences in April 2027, 12 months after assent on 8 April 2026: the Federal Register of Legislation commencement column gives 8 April 2027, while ASIC states 9 April 2027.

Virtual asset service providers, which replaced digital currency exchange providers on 31 March 2026, must enrol with AUSTRAC as reporting entities (AML/CTF Act 2006 s 51B); registrable virtual asset services are virtual asset safekeeping, exchange, transfer, and services connected with the offer or sale of a virtual asset (s 5; s 6 table 1 items 29, 30, 46A, 50A-50C).

A service is a designated service under the AML/CTF Act 2006 only where it has a geographical link to Australia (s 100), and a person who commences to provide a designated service must apply to AUSTRAC for enrolment on the Reporting Entities Roll (s 51B).

Providers of registrable remittance services and registrable virtual asset services must both enrol with AUSTRAC (AML/CTF Act 2006 s 51B) and be registered, on the Remittance Sector Register (s 74) or the Virtual Asset Service Provider Register (s 76A), as amended by Act No. 110 of 2024.

As of April 29, 2026, generally lawyers, accountants, real estate agents, conveyancers, or dealers in precious metals/stones do not need to register (enrolment only if providing designated services). However, this is expected to change with AML/CTF reforms rolling in from 1 July 2026, which will significantly impact professional services compliance.

A person who commences to provide a designated service and is not on the Reporting Entities Roll must apply to AUSTRAC for enrolment no later than 28 days after commencing; each day of delay is a separate contravention of a civil penalty provision (AML/CTF Act 2006 s 51B(1), (2C), (3)).

Under the AML/CTF Act 2006 as amended by Act No. 110 of 2024, reporting entities must undertake an ML/TF risk assessment and maintain AML/CTF policies (ss 26C, 26F), conduct initial, ongoing and enhanced customer due diligence (ss 28, 30, 32), report suspicious matters to AUSTRAC (s 41) and keep records (Part 10).

Persons who began providing the newly designated real estate, professional services or precious-metals dealing services (AML/CTF Act s 6 table 2 item 2, tables 5 and 6) before 1 July 2026 had until 29 July 2026 to apply to enrol with AUSTRAC (Act No. 110 of 2024, Sch 3 Pt 4 item 12).

Digital currency exchange providers have had to register with AUSTRAC since 3 April 2018 (AML/CTF Amendment Act 2017, No. 130); since 31 March 2026 providers of registrable virtual asset services must be registered virtual asset service providers (AML/CTF Act 2006 s 76A, as amended by Act No. 110 of 2024), and ASIC licensing applies separately where a digital asset is a financial product (INFO 225).

The Corporations Amendment (Digital Assets Framework) Act 2026 (No. 38) exempts small platforms only where total transactions through the platforms in the last 12 months do not exceed $10 million and the client's total entry values do not exceed $5,000; both conditions must be met.

The Corporations Amendment (Digital Assets Framework) Act 2026 (No. 38, assent 8 April 2026) regulates digital asset platforms (s 761GC) and tokenised custody platforms (s 761GD); s 761GB defines a digital token by factual control, meaning the ability to transfer it, exclude others from transferring it, and demonstrate both.

ASIC INFO 225 (updated October 2025) states that offering a self-custody or self-hosted wallet product is unlikely to amount to providing a custodial or depository service, whereas controlling a customer's private keys likely is.

Treasury consulted on token mapping from 3 February to 3 March 2023; the resulting digital asset platform reform was enacted as the Corporations Amendment (Digital Assets Framework) Act 2026 (No. 38), passed by both Houses on 1 April 2026 with assent on 8 April 2026.

AML/CTF Act 2006 s 46A, inserted by Act No. 110 of 2024, requires a reporting entity that transfers virtual assets to, or receives them from, a self-hosted wallet whose controller it has not verified to report to the AUSTRAC CEO within 10 business days.

Since 31 March 2026 (Act No. 110 of 2024, Sch 8), AML/CTF Act 2006 s 64 requires an ordering institution, including for virtual asset transfers, to collect and, where the AML/CTF Rules require, verify specified information before giving effect to a transfer of value and to pass it to the next institution in the value transfer chain.

Providing a registrable virtual asset service without AUSTRAC registration is a strict-liability offence punishable by 2 years imprisonment or 500 penalty units, rising to 7 years or 2,000 penalty units for repeat conduct (AML/CTF Act 2006 s 76A); failing to enrol is a civil penalty contravention for each day (s 51B).

ASIC-obtained court penalties against crypto firms include $14 million against BPS Financial over its Qoin Wallet (Federal Court, ASIC 26-008MR, 27 January 2026) and $8 million against Kraken operator Bit Trade for design-and-distribution breaches (ASIC 24-274MR, 12 December 2024).