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Oceania / Verified 2026-07-14

Is crypto legal in Australia?

Legal

Cryptocurrency is fully legal in Australia and has been taxed as property since 2014, with exchanges required to register with AUSTRAC since 2018; a new licensing layer, the Corporations Amendment (Digital Assets Framework) Act, received Royal Assent on 8 April 2026 and will require most exchanges and custody platforms to hold an Australian Financial Services Licence (AFSL) once it commences on 9 April 2027.

Tax treatment

Property / CGT asset (explicitly not a foreign currency) for tax purposes; becomes a regulated 'financial product' under the Corporations Act once the Digital Assets Framework commences in April 2027.

The ATO treats crypto assets as property, not currency: capital gains tax (CGT) applies on disposal — selling, trading one crypto for another, spending it, or gifting it — while crypto received from staking, mining, airdrops, or as salary is taxed as ordinary income at marginal rates. Holding an asset over 12 months currently earns a 50% CGT discount, but from 1 July 2027 this is scheduled to be replaced by an inflation-adjusted discount alongside a proposed 30% minimum tax rate on large gains.

Every disposal is a separate CGT event requiring cost-base and market-value records at the time of the transaction. The ATO has run a direct data-matching program with Australian crypto designated service providers since 2024, so exchange-reported data is typically already visible to the ATO before an individual lodges.

Can banks handle crypto here?

There is no RBA or government prohibition on banks servicing crypto exchanges or customers. Individual banks have at times imposed their own transaction limits or blocks on specific high-risk crypto payment corridors as a scam-prevention measure, but this is bank-specific risk policy, not a regulatory ban.

Buying and selling crypto in Australia

Fiat-to-crypto exchanges must register with AUSTRAC as a Digital Currency Exchange (DCE) provider under the AML/CTF Act (required since 2018). From 31 March 2026, AUSTRAC's regulatory perimeter expands under the AML/CTF Amendment Act 2024 to cover crypto-to-crypto exchange, custody, and transfer services too, with new AML/CTF obligations live from 1 July 2026. Separately, ASIC's transitional no-action position (INFO 225) for exchanges expires June 2026 — platforms had to lodge a complete AFSL application by 30 June 2026 to keep operating under relief ahead of the Digital Assets Framework's April 2027 commencement; of roughly 400 crypto platforms in Australia, only about 10% held ASIC registration going into that deadline.

Worth knowing

Two 2026 reform tracks run in parallel and are easy to conflate: (1) the AUSTRAC/AML-CTF perimeter expansion (new 'virtual asset' definition and designated services), effective 31 March 2026 with obligations from 1 July 2026; and (2) the ASIC/Treasury Digital Assets Framework (AFSL licensing for Digital Asset Platforms and Tokenised Custody Platforms), which received Royal Assent 8 April 2026 but does not commence until 9 April 2027, plus a further 6-month transition for firms with pending applications.

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FAQ

Do I pay tax every time I trade one crypto for another in Australia?

Yes. The ATO treats a crypto-to-crypto trade as a disposal of the first asset, triggering a CGT event — you don't need to cash out to AUD for tax to apply.

Do Australian crypto exchanges need a licence?

AUSTRAC DCE registration has been mandatory since 2018. From April 2027, most exchanges and custody platforms will also need an ASIC-issued AFSL under the new Digital Assets Framework.