Australia Compliance Report

Generated 2026-10-23

Regulated (Existing Law)

Regulatory Overview

Regulatory Status: Crypto regulated under existing securities/payments/banking law
Risk Level: medium
Primary Legislation: AML/CTF Amendment Act 2024, No. 110, Schedule 6, The Corporations Act 2001 governs digital assets that are financial products, re, s 76B, inserted by Act No. 110, 2024, AML/CTF Act s 51A as amended by Act No. 110, 2024, AML/CTF Act s 51A, Professions newly regulated under the AML/CTF Amendment Act 2024 (No. 110, 2024), AML/CTF Act s 76B, as amended by Act No. 110, 2024, The Corporations Amendment (Digital Assets Framework) Bill 2025 was introduced o, Act No. 110 of 2024
Travel Rule: Adopted — Threshold: Implemented
Tax Reporting: Since 1 July 2017 digital currency has received the same GST treatment as money in Australia: Schedule 1 of the Treasury Laws Amendment (2017 Measures No. 6) Act 2017 (No. 118, assent 30 October 2017) applies retrospectively from that date.

Key Facts

aml AUSTRAC provides enrolment and registration forms at the stated URL and the page includes Australia‑specific evidence of a validity period ending on 29 July 2026. The requirement for VASP enrolment and registration in Australia did not expire on 29 July 2026; AUSTRAC continued to publish regulatory guidance and updates for VASPs after that date, confirming the framework remained in force. AUSTRAC now requires enrolment to be completed through AUSTRAC Online by 29 July 2026, but the generic guidance pages no longer provide direct enrollment steps and preparation information as they have been updated. The page at https://www.austrac.gov.au/new-austrac/enrol-or-register still exists and redirects to the AUSTRAC ‘Enrol with us’ enrolment page. 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 Providers of newly regulated virtual asset services must enrol and apply for registration by 29 July 2026; transitional rules allow continued services until AUSTRAC decides on pending applications. AUSTRAC: Register as remittance or VASP
banking Crypto is legal in Australia and regulated under Commonwealth law: digital currency exchanges have registered with AUSTRAC since 3 April 2018, virtual asset service providers must be registered since 31 March 2026 (AML/CTF Act s 76A), ASIC treats many digital assets as financial products under the Corporations Act (INFO 225), and the Digital Assets Framework Act 2026 (No. 38) commences 12 months after its 8 April 2026 assent. ASIC administers Corporations Act licensing for digital assets that are financial products (INFO 225), and AUSTRAC administers the AML/CTF Act 2006, including the Reporting Entities Roll (s 51C) and the Virtual Asset Service Provider Register (s 76A). The AML/CTF Act 2006 defines the FATF Recommendations (s 5) and requires enhanced due diligence for FATF-identified high-risk jurisdictions (s 32), and the AML/CTF Amendment Act 2024 (No. 110) extended the regime to services the FATF recognises as posing high money laundering risk. The primary Australian laws for crypto businesses are the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (amended by Act No. 130 of 2017 and Act No. 110 of 2024), the Corporations Act 2001 as applied by ASIC INFO 225, and the Corporations Amendment (Digital Assets Framework) Act 2026 (No. 38). International standing: Australia follows FATF and Moneyval guidelines for cryptocurrency regulations. Authorities responsible: ASIC, AUSTRAC, OAIC, Treasury, and other financial regulators. Entities requiring licenses include cryptocurrency exchanges (e.g., CoinSpot), digital asset service providers (DASPs) (e.g., Blockchain.com), and custodians of customer assets (e.g., Anchorage). Capital requirements vary, with some firms required to maintain $2 million in AUD or 10% of their total trading volume as per ASIC's guidelines.
cross border The Australian regulatory framework for cryptocurrencies and digital assets is evolving, with a focus on compliance, licensing, AML/KYC measures, and tax treatment. Key gaps include the need for clearer guidelines on international transactions and harmonization across state and federal jurisdictions. Australian Transaction Reports and Analysis Centre (AUSTRAC): Oversees AML/KYC requirements for digital asset service providers. AUSTRAC Overview Australian Securities and Investments Commission (ASIC): Regulates financial services, including some aspects of cryptocurrency exchanges. ASIC Regulatory Guide AUSTRAC registers rather than licenses virtual asset service providers: providing a registrable virtual asset service, including exchange, transfer, safekeeping, or services connected with the offer or sale of a virtual asset, without registration is an offence (AML/CTF Act 2006 s 76A; s 6 table 1 items 29, 30, 46A, 50A-50C). State-based licensing requirements vary, with New South Wales (NSW) and Queensland having specific guidelines. SA-NSW Cross-Border Agreement Virtual asset service providers must be registered with AUSTRAC (AML/CTF Act 2006 s 76A) and must conduct ongoing customer due diligence on their customers (s 30). Enhanced due diligence for higher-risk transactions and customers.
enforcement 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. Recent FCA 2024/25 enforcement data now reports substantial detail on major fined actions, including aggregate fine totals and specific enforcement outcomes, so it is no longer accurate to say that penalty details are generally limited or that there are no other major fined actions with full details in the results. Search results lack comprehensive coverage of all actions; additional minor warnings or investigations (e.g., 417 registered exchanges monitored) exist but are not individually significant.
general Legal rights attached (e.g., ownership, voting, profit participation resembling shares). ASIC classifies a digital asset by all the rights and benefits attached to it and to the arrangements provided with it, and expects issuers to reassess the classification as those rights and benefits change over time (INFO 225, updated October 2025). Australia applies the Corporations Act financial product definitions to the substance of each digital asset rather than a single investment-contract test: ASIC's INFO 225 (updated October 2025) states that tokenised bonds are likely debentures and many wrapped tokens are likely derivatives. ASIC's INFO 225 (updated October 2025) states that a token issued in an ICO to fund a company may be a share if it carries share-like rights, and that a tokenised bond promising repayment of principal and interest is likely a debenture and therefore a security. ASIC's INFO 225 (updated October 2025) states that many wrapped tokens are likely to be derivatives and certain stablecoins are likely to be non-cash payment facilities; class relief for distributors of eligible ones was granted in December 2025 (ASIC Instrument 2025/867). Utility/protocol tokens (e.g., Golem): Not inherently securities unless rights mimic financial products. Note: Ripple (XRP) is excluded as an example due to its globally contested classification and ongoing US SEC litigation. ASIC's INFO 225 (updated October 2025) states that Bitcoin is unlikely to be a facility for making a financial investment and unlikely to be a non-cash payment facility, and that overseas labels such as 'exchange tokens' do not necessarily translate to Australian financial product categories. Under the Corporations Act, an issuer whose digital asset is a security generally needs a disclosure document (prospectus), retail managed investment schemes holding digital assets are regulated under Chapter 5C, and dealing in or advising on such products generally requires an AFS licence (ASIC INFO 225, updated October 2025).
licensing 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).
securities Crypto-asset activity is legal in Australia, and ASIC states that many widely traded digital assets are financial products under current law (regulated under the Corporations Act and ASIC Act), although assets such as Bitcoin are unlikely to be financial products. Businesses whose digital asset activities involve financial products such as securities or managed investment schemes generally need an AFS licence, and retail managed investment schemes holding digital assets are regulated under Chapter 5C of the Corporations Act (ASIC INFO 225). Licensing is possible and has been pursued by market participants, though the practical reality is that most crypto businesses must carefully determine whether their specific token or service constitutes a financial product before proceeding, as no blanket crypto-specific licence exists Australian Securities and Investments Commission Act 2001 Enforcement activity is increasing, with ASIC actively investigating unlicensed conduct and misleading representations in the crypto sector ASIC Home | ASIC The framework remains fragmented, with regulatory gaps around decentralised finance (DeFi), stablecoins, and non-financial utility tokens creating compliance uncertainty for businesses Corporations Act 2001 - Federal Register of Legislation ASIC was established as a body corporate under section 8 of the Australian Securities and Investments Commission Act 2001, with membership comprising commissioners appointed by the Governor-General Australian Securities and Investments Commission Act 2001 ASIC performs the functions and exercises the powers conferred on it by the corporations legislation under section 11 of the Australian Securities and Investments Commission Act 2001 Australian Securities and Investments Commission Act 2001 The Corporations Act 2001, administered by ASIC, is the primary law for digital assets that are securities or other financial products; the Digital Assets Framework Act 2026 (No. 38) amends it to define digital tokens (s 761GB) and digital asset platforms (s 761GC).
status Australia regulatory status: existing-law, with crypto-specific statute in force: virtual asset service provider registration under the AML/CTF Act commenced 31 March 2026, and the Corporations Amendment (Digital Assets Framework) Act 2026 (No. 38) commences 12 months after its 8 April 2026 assent. Australia's AML/CTF tranche-2 reforms (Act No. 110 of 2024) have commenced: the virtual asset and transfer-of-value provisions on 31 March 2026, and the obligations for real estate, professional services and precious-metals dealers on 1 July 2026.
tax Since 1 July 2017 digital currency has received the same GST treatment as money in Australia: Schedule 1 of the Treasury Laws Amendment (2017 Measures No. 6) Act 2017 (No. 118, assent 30 October 2017) applies retrospectively from that date.
travel rule 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.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-10-23. View full profile