The 2026 Guide to Crypto Regulation in Australia

Australia is in the middle of the most significant overhaul of its digital asset regulations since crypto first appeared on the country’s radar.

For years, the regulatory framework was fragmented. It was a patchwork of existing financial services law, AML rules, and occasional enforcement actions. That’s changing as new legislation is on the way, and both users and businesses need to understand what’s coming.

Here’s the current state of play.

Today, the primary regulator for crypto businesses in Australia is AUSTRAC (the Australian Transaction Reports and Analysis Centre).

Any business that operates as a digital currency exchange must register with AUSTRAC as a Digital Currency Exchange (DCE). This registration imposes obligations around anti-money laundering (AML) and counter-terrorism financing (CTF), including implementing KYC procedures, monitoring transactions for suspicious activity, and filing reports with AUSTRAC.

The AUSTRAC registration is the baseline requirement for any digital assets platform serving Australian users. Major platforms operating in Australia, from local exchanges like CoinSpot and Swyftx to global infrastructure providers like Transak, hold this registration.

Alongside the existing DCE framework, AUSTRAC’s broader AML/CTF regime is also being updated. The AML and CTF Act is undergoing reform to expand the definition of “designated services,” which will bring more payment service providers and digital asset businesses under the compliance umbrella.

New rules around International Value Transfer Services (IVTS) will also apply to certain self-hosted wallet transfers, though transitional rules may delay full implementation until 2028 or 2029.

The most significant change on the horizon is the Corporations Amendment (Digital Assets Framework) Bill 2025, introduced to Parliament in November 2025.

This bill represents Australia’s first comprehensive attempt to regulate digital asset platforms and custody services under existing financial services law.

The bill creates two new categories of regulated financial products:

1. Digital Asset Platforms (DAPs), which cover exchanges and platforms that hold crypto on behalf of users
2. Tokenised Custody Platforms (TCPs), which handle the tokenisation of real-world assets

Both will require an Australian Financial Services Licence (AFSL) from ASIC, bringing them under the same regulatory framework that governs traditional financial services providers.

Key requirements under the new framework include:

• The obligation to act efficiently, honestly, and fairly
• Prohibitions on misleading conduct
• Clear disclosure requirements about how assets are held
• Dispute resolution mechanisms
• Minimum capital requirements

Smaller platforms (those holding less than $5,000 per customer and facilitating under $10 million in annual transactions) will be exempt.

The government has described this as bringing “bank-grade standards” to the crypto industry. The legislation is expected to be finalized and enacted in 2026.

ASIC (the Australian Securities and Investments Commission) has historically taken the position that some crypto assets may already be financial products under existing law, meaning they could require an AFSL to distribute or deal in. This “regulation by enforcement” approach has been contentious, with the crypto industry criticising it as unclear and unfair.

To bridge the gap while the new legislation is finalised, ASIC has introduced transitional measures. These include temporary exemptions for the distribution of stablecoins and wrapped tokens (valid until mid-2028), allowances for omnibus custody structures, and a no-action position until June 2026 for businesses operating in good faith. ASIC’s Information Sheet 225, which outlines the regulator’s views on crypto-related obligations, is also under review and will likely be updated as the new framework takes shape.

The Australian Taxation Office treats all cryptocurrency, including coins, stablecoins, NFTs, and tokens, as property subject to capital gains tax (CGT).

Every time you sell, swap, spend, or gift crypto, it’s a CGT event. If you hold an asset for more than 12 months before disposing of it, you qualify for a 50% CGT discount.

The ATO actively tracks crypto transactions using data-matching programs with Australian exchanges. Failing to report crypto gains can result in penalties. Most reputed platforms provide transaction history exports, and specialized crypto tax software (like Koinly or CryptoTaxCalculator, which is Australian-made) can help you stay compliant.

Stablecoins are getting their own regulatory treatment in Australia. The Treasury Laws Amendment (Payments System Modernisation) Bill 2025, introduced in July 2025, expands Australia’s payments framework to cover stablecoin payment platforms alongside other emerging payment services like digital wallets and BNPL providers.

Payment stablecoins are expected to be regulated as stored-value facilities, with issuers potentially needing to comply with requirements similar to those for e-money providers. ASIC has already granted class relief for intermediaries distributing stablecoins issued by licensed entities, signalling a pragmatic approach to the growing use of stablecoins for payments and cross-border transfers.

For platforms facilitating AUD-to-stablecoin conversions, this means operating in a regulatory environment that’s becoming clearer, if not yet fully settled. Providers that already hold multiple global licences, like those registered with AUSTRAC, the UK’s FCA, and US state regulators, are better positioned to adapt to new requirements as they emerge.

One of the most persistent challenges facing Australia’s crypto industry is de-banking. This has been a major complaint from industry participants and was identified as a key concern in regulatory consultations throughout 2024 and 2025.

The new regulatory framework is partly designed to address this by giving crypto businesses a clear legal status. The thinking is that once platforms hold an AFSL and operate under ASIC supervision, banks will have less justification for refusing to provide them with banking services. Whether this plays out in practice remains to be seen, but it’s a step in the right direction.

For everyday users, the regulatory changes are broadly positive. More oversight means better consumer protections, clearer rules about how your assets are held, and access to formal dispute resolution if something goes wrong. The trade-off is that platforms will face higher compliance costs, which could affect fees or the range of available services.

For businesses, you’ll either need to navigate the licensing requirements yourself or partner with infrastructure providers that have already done so. We hold registrations and licences across multiple jurisdictions globally including Australia and offer a way to outsource that compliance complexity rather than building it in-house.

For an industry that’s spent years asking for regulatory clarity, that clarity is finally arriving, and the businesses that are already operating compliantly will be the ones best positioned to benefit.