Remote VASP serving residents 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).

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.

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.

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.

Local Presence: Must be a registered Australian company with an ABN; fit-and-proper directors/owners with clean backgrounds; robust governance, IT security, and risk controls.

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 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).

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).

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).

DCEs registered as reporting entities must transition to VASP registration by updating enrolment details between 31 March 2026 and 29 July 2026 to continue providing services. AUSTRAC QRG: Transitioning from DCE to VASP

VASPs must both enrol and register with AUSTRAC before providing virtual asset services; registration approval is required except under transitional rules for applications before 29 July 2026. AUSTRAC: Register as remittance or VASP

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).

Businesses must enrol with AUSTRAC before providing designated services; daily penalties may accrue after 28 days of operating without enrolment.

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.

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).

Australia's travel rule is AML/CTF Act 2006 s 64 (ordering institutions) and s 65 (beneficiary institutions), as replaced by Act No. 110 of 2024 Sch 8 from 31 March 2026 to cover transfers of virtual assets; the AUD 10,000 figure belongs to the physical-currency threshold transaction report, not the travel rule.

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).

AUSTRAC's actions affected the most entities, signaling broad sector crackdown.