Is Crypto Legal in Australia? What the Law Says

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Yes. Crypto, including bitcoin, is legal to buy, hold and sell in Australia. It isn't legal tender, the ATO taxes it, crypto exchanges must register with AUSTRAC, and ASIC regulates crypto products that count as financial products. A new licensing law for crypto platforms starts on 8 April 2027.

The short answer

There are really two questions: can you own crypto, and how are crypto businesses regulated? For you, the answer is simple. Moneysmart says you can buy or sell crypto through a trading platform or directly. For businesses, it depends on what they do.

The ATO says there are no special tax rules for crypto assets. AUSTRAC requires registration for virtual asset service providers, while ASIC regulates crypto products and services that fall within financial services law.

A further change is coming. The Corporations Amendment (Digital Assets Framework) Act 2026 brings digital asset platforms and tokenised custody platforms into the financial product framework from 8 April 2027, with exemptions and a transition period.

Not legal tender

Moneysmart says crypto assets are not legal tender in Australia and are not widely accepted as payment. This includes Australian dollar stablecoins. So no one has to accept bitcoin as payment for a debt.

A coin that tracks the Australian dollar still isn't Australian money. Moneysmart calls "stablecoin" a marketing term. Read what a stablecoin is for how they work.

Tax: the ATO's view

The ATO says crypto assets are digital representations of value that you can transfer, store or trade electronically. This includes NFTs. For tax purposes, crypto assets are not money.

Tax treatment depends on how you acquire, hold and dispose of an asset. According to the ATO, the most common use is investment. As a general rule, investors' crypto assets are capital gains tax (CGT) assets, including when held by a self-managed super fund. Staking rewards are ordinary income.

The ATO says businesses trading crypto may need to treat it as trading stock or ordinary income. Each crypto asset is also a separate asset for tax purposes, even when you keep several in the same wallet.

Our guide to crypto tax in Australia covers CGT events, the discount, staking and records. For advice about your circumstances, speak to a registered tax agent.

AUSTRAC: anti-money laundering registration for exchanges

AUSTRAC is Australia's anti-money laundering regulator. It says it's illegal to provide virtual asset services in Australia without being registered. According to AUSTRAC, anti-money laundering and counter-terrorism financing obligations apply from 31 March 2026 to services including:

• Exchanging virtual assets for money or for other virtual assets.
• Transfers of value involving virtual assets.
• Safekeeping of virtual assets.
• Some financial services connected with an offer or sale of a virtual asset.

AUSTRAC says providers must enrol and apply for registration, and generally cannot start providing services until registration is approved. Providers of newly regulated services that applied before 29 July 2026 can continue until AUSTRAC decides their application.

Providers must usually identify their customers before providing a designated service and carry out ongoing customer due diligence. AUSTRAC can approve registration with conditions, refuse it, suspend it or cancel it. Criminal penalties apply to providing services without registration.

You can search the AUSTRAC register yourself. Remember what a listing means: AUSTRAC registration is an anti-money laundering registration. It isn't a licence, a safety rating or an endorsement, and it doesn't protect your money if a platform fails. Read more about how to check a crypto exchange.

ASIC: when crypto is a financial product

ASIC regulates financial products and services. Its information sheet INFO 225 explains that whether a crypto product is a financial product depends on what it actually does. A coin can sit outside financial services law while a service built on it sits inside.

In its guidance updated in October 2025, ASIC gives these examples:

• Bitcoin: Unlikely to be a financial product.
• Staking yourself: A basic proof-of-stake arrangement is unlikely to be a financial product.
• Managed staking: An exchange service with features different from the underlying blockchain is likely to be a facility for making a financial investment, and potentially a managed investment scheme.
• Yield-bearing stablecoins: A stablecoin that gives holders new tokens from returns on its reserve is likely to be an interest in a managed investment scheme.
• Wrapped tokens: Likely to be derivatives.
• Crypto derivatives: Contracts for difference, options, forwards and futures referencing digital assets, including perpetual futures, are likely to be derivatives.

ASIC also describes a payment stablecoin issued and redeemable on demand at par, backed by high-quality liquid assets and bank deposits. That example is likely to be a non-cash payment facility, a financial product. Linking it to Australian dollars rather than US dollars doesn't change that assessment.

These are ASIC's examples, each with particular features, not rulings on any named product. ASIC also provides class relief from specified licensing requirements for distributors of eligible stablecoins and wrapped tokens.

The detail is in ASIC's INFO 225.

The new law from 8 April 2027

The Corporations Amendment (Digital Assets Framework) Act 2026 received Royal Assent on 8 April 2026. It starts on 8 April 2027, as the Act's commencement table says and ASIC confirmed on 15 October 2026.

Under the Act, a digital asset platform is a facility where an operator possesses digital tokens for or on behalf of clients. The Act makes digital asset platforms and tokenised custody platforms financial products. Providing financial services for them will require an Australian financial services licence (AFSL) or an exemption.

There is a small-platform exemption with several conditions. These include holding no financial products on the platforms, total transactions of no more than $10 million over the previous 12 months, and a client asset entry-value limit of $5,000 when a token starts to be held. A notice must also be lodged with ASIC. Regulations can raise those amounts.

The Act provides a six-month transition period from commencement. A provider without the right AFSL authorisation can apply during that period, with the new rules not applying to that service until ASIC decides. If it doesn't apply, the rules apply when the transition period ends.

According to ASIC, relevant requirements will include customer disclosure documents, platform rules and standards for holding assets, transactions and settlement. See the digital asset platform law from 8 April 2027 for more detail.

What legal doesn't mean

Legal doesn't mean safe. Moneysmart's crypto guidance, updated on 15 October 2026, says most crypto assets are high-risk investments with very volatile values. You could lose everything you put in.

Moneysmart also says many crypto providers are currently unlicensed, so you may not be protected if a platform fails or is hacked. It says there is no public register to check the legitimacy of crypto exchanges. The AUSTRAC register only answers the anti-money laundering question.

Storage adds another risk. Moneysmart says losing your private key usually means losing your crypto, and there is little hope of recovery if a hacker steals it. Read about hot and cold wallets.

Scams remain a concern too. Moneysmart reports that ASIC removed 3,106 cryptocurrency investment scams in FY26. Read our crypto scams guide.

Who regulates what

Frequently asked questions

Is bitcoin legal in Australia?

Yes. According to Moneysmart, crypto can be bought and sold through a trading platform or directly. ASIC says bitcoin is unlikely to be a financial product. The ATO's tax rules still apply.

Is bitcoin legal tender in Australia?

No. Moneysmart says crypto assets are not legal tender and are not widely accepted as payment. That includes bitcoin and Australian dollar stablecoins.

Does AUSTRAC registration mean an exchange is safe?

No. It's an anti-money laundering registration, not a licence, a safety rating or an endorsement, and it doesn't protect your money if a platform fails.

Do you have to pay tax on crypto?

The ATO says tax treatment depends on how you acquire, hold and dispose of crypto. Investors generally hold CGT assets, while staking rewards are ordinary income. Speak to a registered tax agent about your circumstances.

When do the new crypto platform laws start?

The Act's commencement table and ASIC's release of 15 October 2026 give 8 April 2027. The Act also provides a six-month transition period and exemptions, so not every platform will be licensed on day one.