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Is crypto legal in Australia? Rules & regulation (2026)

Crypto is developing in Australia.

Crypto is legal in Australia and is transitioning from a patchwork regime (AUSTRAC AML registration for DCEs, ASIC applying existing financial-product law to tokens via INFO 225, ATO CGT treatment) to a comprehensive licensing framework. The Corporations Amendment (Digital Assets Framework) Act was passed on 1 April 2026 and received Royal Assent on 8 April 2026, but its core licensing obligations only commence on 9 April 2027. In the interim, ASIC has extended class no-action relief for digital-asset businesses to 30 September 2026 while a parallel stablecoin/payments regime (Tranche 1) remains in exposure draft.

Last verified Official sources first · MethodologyCompare Australia with other countries

Legal framework

Corporations Amendment (Digital Assets Framework) Act 2026 (enacted April 2026, commences 9 April 2027); ASIC INFO 225 and existing Corporations Act 2001 (Ch 7) financial-services regime; AUSTRAC AML/CTF Act 2006 (expanded VASP regime effective 31 March 2026); ATO CGT rules; Treasury Payments System Modernisation Bill (Tranche 1 exposure draft) for tokenised stored-value facilities/stablecoins.

Status by sub-area

  • Stablecoins

    Proposed

    Bespoke regime for fiat-referenced stablecoins (as 'tokenised stored-value facilities') is in Treasury's Tranche 1 exposure-draft stage (released 12 March 2026, consultation closed 9 April 2026); it will require AFSLs, monthly reserve disclosures, redemption rights and APRA prudential oversight for large issuers, but is not yet in force.

    Still pending: Bespoke tokenised stored-value facility regime in exposure draft; enactment pending

  • Exchanges / VASP

    Partial

    Exchanges and VASPs must currently register with AUSTRAC for AML/CTF (expanded 31 March 2026 to include crypto-to-crypto and transfer services); a mandatory AFSL regime for 'digital asset platforms' has been enacted (April 2026) but only commences 9 April 2027. INFO 225 already requires an AFSL where tokens traded are financial products, with ASIC no-action relief to 30 September 2026.

    Still pending: AFSL regime for digital asset platforms commences 9 April 2027

  • Token Offerings

    In force

    There is no bespoke token-offering law; ASIC applies existing Corporations Act provisions on securities, managed investment schemes and other financial products to ICOs/token sales, as set out in INFO 225. If a token confers rights that meet the financial-product definition it triggers prospectus/PDS, AFSL and market-conduct obligations.

  • Custody

    Partial

    AFSL-holders already dealing in tokenised financial products are subject to ASIC's Regulatory Guide 133 (client-money/scheme-property standards), which ASIC applies to crypto custody (segregation on-chain, cold-storage of private keys, multi-sig, ISO 27001-equivalent controls). A dedicated 'tokenised custody platform' licensing regime is enacted but only commences 9 April 2027.

    Still pending: Tokenised custody platform licensing regime commences 9 April 2027

  • DeFi

    Unclear

    There is no DeFi-specific regime. Policy explicitly targets centralised intermediaries and custodial platforms rather than protocols or DAOs; where a front-end offers a yield product it may still be a financial product, but ASIC v Block Earner narrowed that reach for pure DeFi-access variable-yield products.

    Still pending: No DeFi-specific regulatory framework; policy focus on centralised intermediaries only

  • Tax

    In force

    The ATO treats crypto assets as CGT assets (property). Disposals — including crypto-to-crypto swaps — are CGT events, with a 50% individual discount for assets held >12 months. Staking, airdrops, mining and interest yields are ordinary income. GST does not apply to crypto-to-fiat transactions (digital currency treated like money since 2017).

Key points: crypto & digital assets in Australia

  1. New Digital Assets Framework enacted, not yet in force

    The Corporations Amendment (Digital Assets Framework) Act 2026 creates two new regulated categories under the Corporations Act 2001 — 'digital asset platforms' and 'tokenised custody platforms' — each requiring an Australian Financial Services Licence (AFSL) from ASIC. The regime commences on 9 April 2027 with a six-month transition; smaller platforms (holding <A$5,000 per client and <A$10m annual throughput) are exempt.

    asic.gov.au coindesk.com

  2. AUSTRAC AML/CTF regime expanded

    From 31 March 2026 the AML/CTF Amendment Act 2024 expanded the AUSTRAC registration perimeter beyond fiat-crypto Digital Currency Exchanges to cover crypto-to-crypto exchanges, digital-asset custodians and transferors as 'virtual asset service providers' (VASPs/DASPs). Existing DCEs must update their enrolment by 29 July 2026.

    austrac.gov.au austrac.gov.au

  3. ASIC INFO 225 and no-action relief

    ASIC finalised its updated INFO 225 (25-250MR) in 2025, with 18 worked examples on when crypto assets are 'financial products'. A sector-wide no-action position was granted while firms transition; ASIC has since extended relief for eligible digital-asset services to 30 September 2026, after which unlicensed conduct exposes firms to civil/criminal penalties up to 10% of turnover.

    asic.gov.au asic.gov.au

  4. Stablecoins via 'tokenised SVF' — proposed

    Treasury released the Payment Systems Modernisation Tranche 1 exposure draft on 12 March 2026 (consultation closed 9 April 2026). It treats stablecoins referencing a single fiat currency as 'tokenised stored-value facilities' (financial products), imposes AFSL requirements on issuers, requires monthly reserve disclosures and redemption rights, and empowers APRA prudential supervision where group-aggregate SVF liabilities exceed A$200m.

    consult.treasury.gov.au gtlaw.com.au

  5. Tax treatment via ATO

    The ATO treats crypto (including tokens, NFTs and stablecoins) as CGT assets; disposals are CGT events, with a 50% discount for individuals holding >12 months. Staking, airdrops, mining and interest-style yields are ordinary income. Legislation passed June 2026 replaces the CGT discount with a cost-base indexation model plus a 30% minimum tax on real gains from 1 July 2027 (transitional grandfathering for pre-1 July 2027 gains).

    ato.gov.au ato.gov.au

  6. DeFi — regulator focuses on centralised access points

    The Government has explicitly declined to regulate protocols directly, instead regulating centralised intermediaries and custodial platforms. In ASIC v Block Earner (Full Federal Court, 2024) the Court held Block Earner's DeFi-access variable-yield product did not require an AFSL, narrowing the reach of financial-product classification over decentralised products.

    asic.gov.au globallegalinsights.com

Timeline of decisions

  1. Decision
    Australia is cracking down on crypto businesses as its strict new regulatory deadline nears

    CoinDesk Policy

  2. Guidance · official
    ASIC releases updated Information Sheet 225 on digital assets

    ASIC published its long-awaited updated INFO 225 with 18 worked examples clarifying when crypto and digital assets are 'financial products' under the Corporations Act, plus a class no-action position requiring eligible providers to lodge AFSL applications by mid-2026. It is the clearest regulator guidance to date on how existing financial services law applies to crypto.

    ASIC

  3. Law · official
    Treasury releases exposure draft legislation to regulate digital asset platforms

    The government opened consultation on draft laws creating two new financial products, 'digital asset platforms' (DAPs) and 'tokenised custody platforms' (TCPs), requiring providers to hold an AFSL under a 'same activity, same risk, same regulation' approach. This is the first concrete legislative text after years of consultation.

    Treasury (Minister Mulino)

  4. Enforcement · official
    AUSTRAC imposes A$5,000 cash limit and new conditions on crypto ATMs

    Following a taskforce that found widespread scam and fraud activity (especially targeting users over 50), AUSTRAC capped crypto ATM cash deposits/withdrawals at A$5,000, mandated scam warnings and enhanced due diligence, and refused to renew at least one operator's registration. It marked an escalation in enforcement against money-laundering risks in crypto.

    AUSTRAC

  5. Decision · official
    Full Federal Court overturns Block Earner liability finding

    The Full Federal Court reversed the earlier ruling, holding that Block Earner's 'Earner' yield product was not a financial product requiring a licence, and dismissed ASIC's penalty appeal. ASIC then sought special leave to appeal to the High Court, leaving the licensing perimeter for crypto yield products unsettled.

    ASIC

  6. Guidance · official
    Government releases statement on developing an innovative digital asset industry

    Treasury published a policy statement setting out the government's reform roadmap for digital assets and payment stablecoins, committing to draft legislation in 2025 and aligning Australia with international best practice. It signalled the move from exploratory consultation toward a defined regulatory regime.

    Treasury

  7. Decision · official
    Federal Court finds Finder Wallet's 'Finder Earn' was not a debenture

    ASIC lost its case against Finder Wallet when the Federal Court ruled the crypto-linked 'Finder Earn' product was not a debenture; the decision was upheld on appeal in 2025. The loss highlighted the difficulty of fitting crypto products into existing financial-product definitions.

    ASIC / Federal Court

  8. Enforcement · official
    Federal Court finds Block Earner needed a financial services licence

    The Federal Court held that Block Earner's 'Earner' product offered between March and November 2022 was a financial product, meaning the firm engaged in unlicensed conduct. It was a landmark first-instance ruling testing whether crypto yield products fall inside Australia's licensing regime.

    ASIC

  9. Guidance · official
    Treasury proposes 'Regulating Digital Asset Platforms' framework

    Treasury released a proposal paper to bring crypto platforms holding customer assets into the AFSL regime via a new 'digital asset facility' product, using asset-holding as the regulatory anchor. It became the foundation for the later exposure draft legislation.

    Treasury

  10. Guidance · official
    Treasury releases 'Token Mapping' consultation paper

    Treasury published its token mapping paper to classify crypto assets and identify gaps in existing law, an Australian-first foundational exercise. It recommended against a wholly new taxonomy and steered policy toward adapting the existing financial services framework.

    Treasury

  11. Law · official
    AUSTRAC begins regulating digital currency exchanges under AML/CTF Act

    Amendments to the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 took effect, requiring digital currency exchanges to register with AUSTRAC, verify customers, monitor transactions and report suspicious and threshold transactions. This established the core AML regime that still governs crypto businesses.

    AUSTRAC

  12. Law · official
    GST 'double taxation' of digital currency removed

    Amendments to the GST law treated digital currency like money for GST purposes, ending the double-tax that had applied when buying crypto and then using it to purchase goods. The reform was a major step in normalising crypto's tax treatment and supporting the local industry.

    Australian Taxation Office

  13. Guidance · official
    ATO issues first guidance treating Bitcoin as property for CGT

    The ATO published guidance classifying Bitcoin and similar cryptocurrencies as property and CGT assets rather than money or foreign currency, so disposals trigger capital gains tax events. This established the tax framework for crypto investors that still applies today.

    Australian Taxation Office

Sources

  1. asic.gov.au/about-asic/news-centre/news-items/asic-s-roadmap-for-digital-assets-l
  2. asic.gov.au/about-asic/news-centre/find-a-media-release/2025-releases/25-250mr-up
  3. asic.gov.au/regulatory-resources/digital-transformation/digital-assets-financial-
  4. asic.gov.au/about-asic/news-centre/news-items/deadline-looms-for-digital-asset-bu
  5. consult.treasury.gov.au/c2025-701519
  6. austrac.gov.au/about-us/record-our-actions/virtual-asset-registration-actions
  7. austrac.gov.au/digital-currency-exchange-provider-registration-actions
  8. ato.gov.au/individuals-and-families/investments-and-assets/crypto-asset-investme
  9. ato.gov.au/individuals-and-families/investments-and-assets/crypto-asset-investme
  10. coindesk.com/policy/2026/04/01/australia-passes-crypto-licensing-bill-as-ausd24-bi
  11. gtlaw.com.au/insights/key-topics/regulation-in-motion/payments-system-modernisatio
  12. asic.gov.au/about-asic/news-centre/articles/when-history-rhymes-regulating-digita
  13. globallegalinsights.com/practice-areas/blockchain-cryptocurrency-laws-and-regulations/austral

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Orientation, not legal advice: verify against the primary sources linked above. Last verified 18 Jul 2026. Methodology & how to cite · State of Technology Regulation 2026