Is Crypto Legal in Australia? Your 2025 Guide to Regulations

As of early 2025, around 31% of Australian adults own or have owned cryptocurrency. This is an all-time high and a significant increase from 28% in the previous year, underscoring the growing mainstream adoption of digital assets on a global scale. However, the rapid expansion of Australia’s digital asset market has outpaced the development of relevant regulatory frameworks in the country, making effective regulations a clear goal of the Australian government. 

This guide explores the current state of cryptocurrency regulations in Australia, upcoming reforms, and what businesses and investors need to know to navigate the evolving landscape.

Is cryptocurrency legal in Australia?

Yes, cryptocurrency is 100% legal in Australia. That means people are free to buy, sell, spend, or store cryptocurrencies in the country. However, it is not considered legal tender. While Australians are free to use cryptocurrencies, this does not mean Australian businesses are obliged to accept them. 

What are the main regulations?

The Australian government recognizes digital currencies and has a regulatory framework to oversee their use. Cryptocurrency exchanges are regulated in Australia, and, under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, businesses that provide digital currency exchange services must register with the Australian Transaction Reports and Analysis Centre (AUSTRAC) and comply with relevant obligations, including customer identification and reporting requirements.

Other regulations governing crypto in Australia include:

Corporations Act 2001 (Cth): Regulates crypto assets that are classified as financial products, requiring compliance with licensing, disclosure, and conduct obligations for entities dealing with such assets.

National Consumer Credit Protection Act 2009 (NCCP Act): Applies to crypto lending and credit activities, requiring relevant entities to hold an Australian credit license or be exempt.

Cryptocurrency regulations are determined at a federal level in Australia, which means obligations are the same across all states and territories in the country. 

Suggested Read: The Regulatory Shift in Crypto: What Business Leaders Need to Know in 2025

Who regulates crypto in Australia?

In 2025, Australia has two main authorities that supervise or regulate powers over different aspects of digital asset use, affecting virtual asset service providers (VASPs)—or digital asset service providers (DASPs), as they are generally known in Australia. Agencies related to the crypto regulatory framework in the country include: 

• Australian Securities and Investments Commission (ASIC)—ASIC’s regulatory focus is limited to activities involving financial products and services, as defined under the Corporations Act 2001. This means that not all crypto assets and services automatically fall under ASIC’s jurisdiction—only those that meet the legal definition of a financial product do. This includes certain stablecoins, tokenized financial instruments, and specific custody services. DASPs that provide services involving financial products are required to hold an Australian Financial Services Licence (AFSL).
• Australian Transaction Reports and Analysis Centre (AUSTRAC)—AUSTRAC regulates digital currency exchange providers (DCEs) under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. This means that, as of 2025, only DCEs exchanging fiat and crypto are required to register with AUSTRAC. From March 31, 2026, AUSTRAC’s regulatory scope will expand to cover all DASPs.

Who’s affected by Australian crypto regulations?

Australian Financial Services Licenses

Cryptocurrency companies operating in Australia are required to obtain an Australian Financial Services Licence (AFSL) if they engage in activities involving financial products or services as defined by the Corporations Act 2001. ASIC has clarified that many crypto-related activities fall under existing financial services laws, which requires an AFSL. A crypto business may have to obtain this license if it engages in any of the following activities:

• Issuing or dealing in financial products, such as:
  • Managed investment schemes: If a crypto asset involves pooling investor funds to generate returns, it may be considered a managed investment scheme.
  • Securities: Tokens that provide rights similar to shares, such as ownership, voting rights, or profit-sharing, may be classified as securities.
  • Derivatives: Crypto assets that derive their value from underlying assets and involve agreements to buy or sell at a future date may be considered derivatives.
  • Non-cash payment facilities: Stablecoins or other crypto assets used to make payments without involving physical cash may fall into this category.
• Providing custodial or depository services: Holding financial products or assets on behalf of clients.

ASIC emphasizes that the classification of a crypto asset as a financial product depends on its characteristics and the rights it confers to holders, rather than its label or technological features. Therefore, a detailed analysis of each crypto asset and the associated activities is necessary to determine licensing requirements.

In December 2024, ASIC released Consultation Paper 381, proposing updates to Information Sheet 225 to provide clearer guidance on how financial services laws apply to crypto assets. The updated guidance aims to assist crypto businesses in understanding their obligations and determining whether they need to obtain an AFSL. The final version of the updated Information Sheet 225 is expected to be published by mid-2025. 

AUSTRAC registration

Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act), any business that provides a digital currency exchange service must register with AUSTRAC. Specifically, this includes exchanging fiat currency for digital currency, or vice versa.

This applies to both online platforms and physical locations—including crypto ATMs—of digital currency exchange providers (DCEs).

AUSTRAC provides an online tool for assessing the need for registration.

Additionally, AUSTRAC is in the process of finalizing the new AML/CTF rules, with the changes expected in March 2026. The scope of regulated crypto activities in Australia is expected to include:

• Exchanging one digital currency for another
• Transferring digital assets on behalf of clients
• Custody or management of digital assets
• Providing financial services related to the issuance or sale of digital currencies (e.g., ICOs)

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

Key differences between AUSTRAC and AFSL as of June 2025:

AUSTRAC:

• Focus: Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF)
• Mandatory for DCEs.

ASIC (AFSL):

• Focus: Regulated financial products and services under the Corporations Act
• Mandatory only for specific products (e.g., tokenized securities, derivatives).

Upcoming crypto regulation reforms (2025–2026)

Reform	Expected Date	Summary
Digital Asset Platform (DAP) Licensing Framework	Mid-2025	New licensing regime for crypto exchanges and some custodial platforms, requiring an Australian Financial Services Licence (AFSL) and compliance with financial services obligations.
Payment Stablecoin Regulation	Mid-2025	Fiat-backed, non-interest-bearing stablecoins will be classified as NCPFs (these may be reclassified as payment products), subject to AFSL obligations similar to stored-value facilities.
ASIC Crypto Guidance (INFO 225) Update	Mid-2025	Updated guidance on how current financial services laws apply to digital assets, including licensing requirements.
AML/CTF Reforms (Including the Travel Rule)	March 31, 2026	AML/CTF obligations will be expanded to encompass more DAPS. This will include Travel Rule implementation.
Crypto Asset Reporting Framework (CARF) Implementation	By 2027	Australia plans to implement the OECD’s CARF, allowing tax authorities to collect and exchange information on crypto-asset transactions.

Download Sumsub’s comprehensive compliance guidelines for Australia. This edition covers the legal requirements for customer identification, verification, and due diligence in non-face-to-face business relationships.

Regulatory requirements for crypto businesses in Australia

Step-by-step checklist

Regulatory requirements for Digital Currency Exchange (DCE) Providers (AUSTRAC)

1. Register with AUSTRAC
   • Mandatory for all DCE
   • Must register before offering services in Australia
   • Registration must be renewed every 3 years

2. Implement KYC procedures
   • Verify customer identity before providing services (KYC).
   • Use reliable, government-recognized documentation (e.g., Australian passport, driver’s license).
   • Apply:
     • Customer Due Diligence (CDD) for most customers
     • Enhanced Due Diligence (EDD) for high-risk customers or Politically Exposed Persons (PEPs)

3. Maintain an AML/CTF compliance program
   • Develop and maintain a tailored AML/CTF program suited to your crypto business
   • Appoint a Compliance Officer
   • Include:
     • Ongoing risk assessments
     • Regular internal audits
     • Staff training on AML/CTF obligations

4. Implement transaction monitoring and reporting systems
   • Monitor transactions for suspicious activity.
   • Submit reports to AUSTRAC:
     • Suspicious Matter Reports (SMRs)
     • Threshold Transaction Reports (TTRs)
     • International Funds Transfer Instructions (IFTIs)

5. Stay updated
   • Regularly monitor AUSTRAC updates.

Suggested read: KYC Requirements in Australia—Complete Guide

Regulatory requirements for crypto businesses seeking an AFSL

1. Comply with Corporations Act 2001 Obligations
   • Have qualified Responsible Managers
   • Maintain financial and risk management systems
   • Provide Financial Services Guides (FSGs) and Product Disclosure Statements (PDSs)
   • Implement dispute resolution procedures
   • Comply with conduct and disclosure rules under the Corporations Act

2. Ensure consumer protections and cybersecurity standards
   • Safeguard customer funds with robust security systems.
   • Stay compliant with obligations to prevent, detect, and report scams and fraudulent activities.

3. Stay Updated
   • Monitor ASIC’s updates

Is the crypto Travel Rule enforced in Australia?

As of the time of publishing the article, Australia has not yet implemented the FATF’s Travel Rule for cryptocurrency transactions. However, Australia is committed to introducing FATF recommendations, with AUSTRAC actively working to align with the Travel Rule. 

Revised AML/CTF rules that will incorporate the Travel Rule are expected to be finalized and published in August 2025 and are expected to take effect on March 31, 2026, with no specified transaction threshold. Self-hosted wallet verification will be required, and VASP due diligence must be conducted.

When introduced, VASPs will be expected to collect and transmit information about both the originator and beneficiary of transactions, including:

• names
• addresses
• places of birth
• customer numbers or unique transaction identifiers

VASPs will be required to verify the ownership of self-hosted wallets and report any unverified transactions to AUSTRAC.

VASPs (or DASPs) operating in Australia should prepare for these changes to ensure readiness for the 2026 introduction.

Suggested read: Protocols in the Travel Rule Solution Explained (2025)

How is DeFi regulated in Australia?

Australia does not have any regulations specifically tailored to Decentralized Finance (DeFi). ASIC’s current regulatory frameworks focus on centralized entities providing financial services, which it is in the process of expanding to better incorporate digital assets. 

The Australian Treasury’s plans to develop a licensing regime for DAPs could theoretically encompass some DeFi services, but any specifics remain uncertain.

The Treasury states in its March 2025 statement that it “continues to monitor international approaches to DeFi, including the EU and the US, to assess the suitability of their approaches for adoption in Australia.”

Key 2025 trends that could impact the crypto industry in Australia

Project Acacia

The Reserve Bank of Australia has launched a three-year initiative, Project Acacia, to explore opportunities to boost the “efficiency, transparency, and resilience” of wholesale markets through tokenization and new settlement infrastructure. It focuses on a wholesale Central Bank Digital Currency (CBDC) to enhance market efficiency and resilience after finding little public case for a retail CBDC. A report on the project’s findings is expected by the end of 2025. 

Enhanced consumer protections against crime

ASIC is enhancing its efforts to protect consumers in the crypto sector, focusing on fraud and other criminal misconduct. New legislation was introduced earlier in 2025 that mandates banks, telecommunications companies, and social media platforms to detect, disrupt, and report scams, which could affect the crypto industry in Australia. Businesses that fail to meet their obligations under this framework face fines of up to $50m.

Innovative Australian Digital Asset Industry

Australia is developing an “Innovative Australian Digital Asset Industry.” The Australian government is working to bring key digital asset platforms (DAPs) under existing financial services laws. Under proposed Payments Licensing Reforms, DAPs—online platforms that custody digital assets like cryptocurrencies—will be classified as Stored-Value Facilities (SVFs).

The reform priorities include:

• Establishing a regulatory framework for DAPs
• Creating guidelines for payment stablecoins
• Reviewing Australia’s Enhanced Regulatory Sandbox
• Exploring digital asset technology in financial markets

Suggested read: The Future Is Frictionless and Verified: How Digital ID Is Reshaping APAC

• Is cryptocurrency legal in Australia?

  Yes, cryptocurrency is legal in Australia, meaning people can buy, sell, trade, spend, and hold cryptocurrencies. While recognized under legal frameworks, including taxation and anti-money laundering laws, it is not considered legal tender.

• Who regulates cryptocurrency in Australia?

  Cryptocurrency is regulated by two main authorities in Australia. The Australian Transaction Reports and Analysis Centre (AUSTRAC) regulates digital currency exchange providers (DCEs) under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006. From 31 March 2026, AUSTRAC’s regulatory scope will expand to cover all DASPs (VASPs). The Australian Securities and Investments Commission’s (ASIC) regulatory focus is limited to activities involving financial products and services, as defined under the Corporations Act 2001.

• What are the upcoming crypto regulations in Australia?

  Australia is in the process of implementing a licensing framework focusing on crypto exchanges and custodial services. There are also plans to clarify regulations on stablecoins and introduce AML/CTF regulations for cryptocurrencies, similar to those for traditional financial institutions. The Travel Rule is also expected to be implemented in the country in 2026.

• What is the Crypto Travel Rule, and how does it apply in Australia?

  The Crypto Travel Rule is an FATF recommendation that requires virtual asset service providers (VASPs) to share originator and beneficiary information for transactions. While it is not yet implemented in Australia, AUSTRAC is working toward integrating this FATF recommendation into the country’s anti-money laundering framework by March 31, 2026.