Crypto license in Australia

An Australian crypto license combines AUSTRAC DCE registration (free, 6 weeks) and ASIC AFSL for custody services ($50K–$200K, 6–8 months). The Digital Assets Framework Bill 2025 will require AFSL for all platforms exceeding $10M annual volume or $5K per customer from 2026. Corporate tax rate: 30%.

AFSL is mandatory for custody of tokenized assets, trading infrastructure, and management of tokenized structures. DCE registration alone is sufficient for basic crypto-to-fiat exchange services, OTC platforms, and crypto ATMs.

Regulation of the crypto business in Australia is based on the principle of control by type of service. There is no single Australia crypto license; companies operate under the AUSTRAC (DCE), ASIC (AFSL) regimes, and the future Digital Asset Platforms model proposed in the Corporations Amendment (Digital Assets Framework) Bill 2025 effective 2026.

1. Digital Currency Exchange (DCE) registration with AUSTRAC

This is the basic regime for services that exchange digital currency for fiat or vice versa. It covers exchanges, OTC platforms, crypto ATMs, and wallets with a buy/sell function.

What registration gives you:

• legal operation in the exchange market;
• quick business launch;
• clear AML/CTF, KYC, and reporting requirements;
• no need to obtain an AFSL if there are no financial products.

2. AFSL — Australian Financial Services License (ASIC)

AFSL is mandatory if the crypto service qualifies as a financial product under the Corporations Act. This applies to projects that:

• store customers’ digital or tokenized assets (custody),
• provide trading or investment infrastructure,
• organize the issuance or circulation of tokenized financial instruments,
• provide consulting or brokerage services.

AFSL requires corporate governance, internal controls, risk management, and reporting to ASIC.

3. Digital Asset Platform (DAP) and Tokenised Custody Platform (TCP)

The Digital Assets Framework Bill 2025, introduced to parliament in November 2025, proposes two new categories of regulated services:

• Digital Asset Platform (DAP) — infrastructure services with asset storage, trading, transfers, staking, and wrapped assets.
• Tokenised Custody Platform (TCP) — specialised custodial platforms for tokenised assets.

Both categories will be considered financial products, which automatically makes AFSL mandatory. An 18-month transition period is provided: 12 months from Royal Assent to the law coming into force, plus 6 months for operators to adapt to the new requirements.

Australia’s crypto license requirements are based on the adopted legislative framework. The ASIC and AUSTRAC websites provide a complete list of legislative norms for financial markets, including the crypto industry, AML/CFT programs, user identification and verification schemes, reporting deadlines for companies, etc. These include current rules and regulations such as:
In Australia, cryptocurrencies are regulated by two bodies: the Australian Securities and Investments Industry Committee (ASIC) and the Australian National Transfer Reports and Analysis Center (AUSTRAC). Each of them performs its specific functions aimed at ensuring the stability of the cryptocurrency market and protecting its participants.

Australian Securities and Investments Commission (ASIC)

This is the government body responsible for regulating all financial services in Australia, including the cryptocurrency industry. Ranked among the world’s trusted regulators, ASIC issuing licenses is a mark of trust that companies can be considered reliable. The functions and powers of the Commission are set out in the ASIC Act 2001.

Under the legislation, ASIC is responsible for the registration of financial and cryptocurrency service providers and manages the publicly available registers of legal entities in the country. This regulator has the power to prohibit the activities of companies that violate the applicable laws and initiate legal proceedings against them. ASIC investigates financial irregularities and has the right to impose fines and prosecute individuals and legal entities that have committed violations.

Other important ASIC functions include:

• monitoring cryptocurrency and financial transactions;
• tracking news in monitored companies;
• monitoring of capitalization indicators;
• analyzing the balance of payments, etc.

In addition, the commission influences regulatory changes to improve the efficiency and transparency of financial markets.

National Transfer Reporting and Analysis Center (AUSTRAC)

This body, part of Australia’s financial intelligence agency, has been in operation since 1989. Its responsibilities include combating money laundering and countering the financing of terrorism and other criminal activities.

The activities of the regulatory body are set out in the Anti-Money Laundering and Terrorist Financing Act 2006 and the Financial Transaction Reports Act 1988. The Australian government has granted AUSTRAC enforcement and investigative powers over persons involved in suspicious activity. Since 2017, this regulator has required cryptocurrency companies to follow its AML/CFT program guidelines.

Legal framework for crypto-business in Australia

Currently, there is no specific regulatory framework for cryptocurrencies in Australia. Legislation is applied to cryptoassets depending on their functional characteristics.

For example, cryptocurrency financial services companies must have a financial license. If tokens representing financial products are traded on exchanges, a cryptocurrency exchange operator may need a broker license.
It is therefore important to correctly identify the nature of the cryptocurrency being used to apply the appropriate governing legislation to it. Our experts are happy to provide more detailed advice on the aspects of applicable law in your particular case.

Since 2009, Australia has had a Code of Conduct for Virtual Currencies, which sets out basic standards of behavior in the blockchain market. This code addresses various aspects such as customer and staff safety, anti-money laundering, and other issues.

At the state level, decentralized virtual currencies were recognized in 2017 with regulatory changes to the Anti-Money Laundering and Combating the Financing of Criminal Organizations (AML/CFT) framework. Under the AML/CFT law, companies conducting cryptocurrency activities are required to develop and implement policies, standards, and procedures for customer identification, transaction monitoring, and suspicious transaction reporting. Entrepreneurs interested in obtaining a crypto license in Australia must have systems in place to monitor and manage financial crime risks.

Australian regulators are also governed by other laws under the ongoing framework, which includes:

• Competition and Consumer Act 2010 – prohibits misleading consumers and offenders such as issuers, sponsors and other market participants are subject to prosecution;
• Corporations Act 2001 – regulates the provision of financial services. Under the legislation, crypto assets that are part of an investment or exchange-traded product require a license to provide financial services in Australia;
• National Consumer Credit Protection Act 2009 – establishes a credit activities and services regime whereby a credit license is required for cryptocurrency lending;
• Electronic Transactions Act 1999 – regulates electronic transactions, including self-executing transactions using blockchain or distributed ledger technology.

In October 2023, the Australian government introduced a draft regulatory framework for the cryptocurrency industry. It includes licensing and custody rules for cryptoasset providers. According to the bill, cryptocurrency exchanges and brokers seeking a financial services license from ASIC will have to meet several requirements. One of them is to have at least $5 million on the platform or $1,500 in each customer’s account. The bill also includes some of the world’s first rules for central bank digital currencies (CBDCs) and also looks at reducing the tax burden, including the amount of capital gains tax and providing incentives for renewable energy miners.

According to the latest reports, Australia plans to pass the bill in 2024. Once it is passed, exchanges will have 12 months to transition to the new regime under the law.

Developing an Innovative Australian Digital Asset Industry, presented in March 2025, outlines key changes to digital currencies, payment systems, and the DCE licensing structure. Based on virtual asset regulations in the EU and Singapore, the government intends to implement these changes.

The modernization of Australia’s legislative framework continues, with the Ministry of Finance focusing all its efforts on improving the efficiency of digital markets and reducing crypto risks.

How will crypto regulation change in Australia in 2025–2026?

Australia is entering a period of the most significant reform of digital asset regulation in the last ten years. In November 2025, the Corporations Amendment (Digital Assets Framework) Bill 2025, which for the first time establishes a separate legal regime for digital platforms and tokenized services. This document changes the approach to regulation: infrastructure platforms, custodial services, and projects with tokenized assets will be treated as financial services and will be subject to AFSL requirements once the law comes into force.

The reform includes a 12-month period after Royal Assent for preparation and an additional 6-month transition period during which operators are required to submit an application and bring their activities into compliance with the new regulations. The model creates a predictable environment: companies know the deadlines, criteria, and expected set of requirements.

At the same time, the anti-money laundering regime is being updated. Following the passage of the AML/CTF Amendment Act 2024, AUSTRAC began phasing in updated standards that will become mandatory by July 1, 2026. The range of entities subject to regulation (“tranche 2”) is expanding, and requirements for risk assessment, Travel Rule implementation, internal procedures, and reporting for all VASPs are being strengthened.

ASIC, in turn, is updating its guidance on digital assets — in 2025, revised guidelines (INFO 225 and related documents) will be published to help companies understand in advance which tokens and services will be recognized as financial products even before the Digital Assets Framework comes into full effect.

For crypto companies, this means that in 2025–2027, they will need to take into account not only the current AUSTRAC requirements, but also the future need to comply with ASIC financial standards, as well as prepare for expanded AML/CTF controls, which will become mandatory for all transactions with virtual assets.

TOTAL TIMELINE:

• DCE only: 3–5 months
• DCE + AFSL: 6–12 months
• Full compliance (DAF): 12–18 months from Royal Assent

In Australia, cryptocurrency is generally taxed as property.

Highlights of cryptocurrency taxation:

Buying and holding cryptocurrency
Buying cryptocurrency with fiat money (e.g. AUD) is tax-free, as is storing it.

Selling cryptocurrency
Gains from the sale of cryptocurrency are subject to capital gains tax. Losses from the sale of cryptocurrency can be deducted from taxable income.

Cryptocurrency mining
Income from cryptocurrency mining is subject to income tax as ordinary income. Cryptocurrency mining expenses can be deducted from taxable income. Capital gains tax also applies to the mining and subsequent sale of tokens. It is levied on the difference between the price at the time of mining and the price at the time of sale.

Record-keeping requirements
It is important to keep accurate records of all cryptocurrency transactions, including details of acquisition, disposition, and any associated costs, to correctly calculate your tax liability.

Capital gains tax rates
The tax rate depends on your income:

• for income between $0 and $18,200, a 0% tax rate applies;
• for income between $18,201 and $45,000, a 0% tax rate applies, and a 19% tax rate applies on amounts over $18,200;

• for income between $45,001 and $120,000, a tax rate of $5,092 plus 32% on the amount over $45,000 applies;
• for income between $120,001 and $180,000, a tax rate of $29,467 plus 37% of the amount over $120,000 applies;
• for income of $180,001 or more, a tax rate of $51,667 plus 45% of the amount over $180,000 applies.

Australian residents receive a 50% tax rebate when holding cryptocurrency for 12 months or more.

There are also several tax benefits for non-residents. Here are the instances in which you can avoid paying cryptocurrency tax in Australia:

• receiving cryptocurrency as a gift;
• receiving cryptocurrency through mining as part of a hobby;
• transferring cryptocurrency between your wallets, provided you follow transaction fees;
• buying goods and services with cryptocurrency for personal use;
• donating cryptocurrency to registered charities with Deductible Gift Recipient (DGR) status.

For more information on the taxation of cryptocurrencies, please refer to the Cryptocurrency Taxation Guide released by the Australian Taxation Office (ATO).

Key provisions for cryptocurrency taxation in Australia (2026)

In Australia, cryptocurrency is considered property. Any transactions involving digital assets are taxed in accordance with the rules of the Australian Taxation Office (ATO).

Key provisions:

• the purchase of cryptocurrency is not taxable;
• the sale, exchange, conversion to fiat, or payment for goods constitutes a CGT event;
• if the asset is held for more than 12 months, a 50% CGT discount applies (for residents);
• income from mining, staking, and rewards is classified as ordinary income;
• all transactions must be kept for at least 5 years;
• assets for personal use may receive tax benefits if certain criteria are met.

Current rates are calculated according to the standard income tax scale in Australia, and CGT is considered part of assessable income.

Income tax rates (personal income tax), 2025–2026

* — does not include Medicare levy (usually ~2%), which is added on top of the basic income tax