Cryptocurrency Regulations and Laws in Australia
Learn about cryptocurrency regulations in Australia. Discover how crypto is taxed, how exchanges are regulated by AUSTRAC and ASIC, and what upcoming laws may govern digital asset platforms and stablecoins.
Australia is a well-regulated and crypto-friendly country that recognizes digital assets as legal property. Crypto service providers must comply with strict anti-money laundering laws, and taxation applies to capital gains and income derived from crypto activities.
Summary
Cryptocurrencies are legal in Australia and treated as property. The government requires exchanges and custody providers to register with AUSTRAC for AML/CTF compliance. While there is no dedicated crypto legislation yet, the government is working toward a comprehensive regulatory framework, including licensing for exchanges and stablecoin oversight.
Legal Status
- General Use: Legal
- Trading: Legal and regulated
- Exchanges: Legal; must register with AUSTRAC
- Mining: Legal and taxed as business income
- ICOs & Tokens: Permitted; may be subject to securities law under ASIC
- NFTs: Legal; treated as digital property
Taxation
The Australian Taxation Office (ATO) treats cryptocurrencies as property for tax purposes. Both capital gains and income tax can apply depending on how the asset is used.
- Capital Gains Tax: Yes – applies when crypto is sold, swapped, or used to purchase goods/services
- Income Tax on Crypto Earnings: Yes – applies to mining, staking, and crypto received as payment
- Mining Taxation: Taxable as income if conducted as a business
- NFT Taxation: Subject to CGT or income tax depending on purpose
- Reporting Requirements: Mandatory – all crypto transactions must be reported for tax purposes
Regulatory Bodies
- Australian Securities and Investments Commission (ASIC): Regulates financial products and services, including ICOs and crypto platforms offering regulated services
- Australian Taxation Office (ATO): Handles crypto-related tax matters
- Australian Transaction Reports and Analysis Centre (AUSTRAC): Enforces AML/CTF laws and requires registration of digital currency exchanges
- Treasury Department: Oversees the development of national crypto and stablecoin legislation
Key Regulations & Laws
- 2017 AUSTRAC Regulations: Required digital currency exchanges to register and comply with AML/CTF laws
- ATO Guidance (ongoing): Defines treatment of crypto for individuals and businesses
- ASIC ICO Guidance: Clarifies when tokens are considered securities
- 2023 Token Mapping Consultation: Government initiative to map existing crypto assets to regulatory categories
- Upcoming Crypto Licensing Framework: A draft law for licensing digital asset platforms is expected in 2025
Timeline of Regulatory Milestones
| Year | Event | Description |
|---|---|---|
| 2017 | AUSTRAC AML law | Exchanges must register and report suspicious activity |
| 2019 | ATO CGT guidance | Clarifies when CGT applies to crypto |
| 2021 | Senate report | Recommended licensing regime and custodial standards |
| 2023 | Token mapping begins | Categorizing crypto assets for future regulation |
| 2025 | Licensing draft law expected | Platform and custodial regulations anticipated |
Resources
- Australian Securities and Investments Commission (ASIC)
- Australian Taxation Office (ATO) – Crypto Guidance
- AUSTRAC – Digital Currency Exchange Providers
- Australian Treasury – Token Mapping Consultation
Notes
- Travel Tip: Crypto is legal for personal use and investment, but not widely accepted by merchants.
- Local Adoption Trends: Australia has high crypto adoption, with active retail trading and a growing number of licensed exchanges and fintechs.
- Language Notes: All government materials are available in English.