The cryptocurrency market in 2024 reached a capitalization of $2.8 trillion, and more and more entrepreneurs are trying to master it. Australia is among the top 3 countries where virtual money is actively used. Here every fifth resident owns one or another cryptocurrency, it is allowed to pay bills, and parcels and even make savings for retirement with the help of cryptocurrencies, but not to buy real estate.

The government has not granted cryptocurrencies the status of legal tender but considers them as property with appropriate taxes applied to them.

The Australian government has started to regulate the digital market since 2017 based on the Anti-Money Laundering and Countering the Financing of Terrorism Act (AML/CTF) regulations, as well as applying taxation standards (income tax and corporation tax). Investors can take advantage of a wide range of opportunities, and effectively develop their business, but only after obtaining a Cryptocurrency exchange license in Australia from the Regulators (ASIC and AUSTRAC). Operating illegally without a license can result in a fine of $100,000 or imprisonment for two years. The license of this jurisdiction opens the door to the world of innovation in the Asian region and increases confidence in the company’s activities in the international market.

Advantages of getting a cryptocurrency license in Australia

  • Confidence in the business. Legally, the authorization from the regulatory authorities is a confirmation that the company has passed all the verification processes for compliance with standards. This stimulates interest from potential investors and customers. Cryptolicense from the Regulators of Australia is highly valued in the market.
  • Transparency of financial transactions. Regulators require market participants to comply with AML/KYC rules. Such rules minimize the risks associated with fraud and money laundering.
  • Asian market. Australia, due to its location, is connected economically with many participants of the Asian region and has a reputation as one of the serious trading players. Legal crypto business in this region will allow the opening of the market of Asia.

Access to technology and innovation. The government is interested in the introduction of blockchain technology in the banking system, supports crypto-business in every possible way, and optimizes Crypto exchange license Australia cost, there are many ATMs for crypto exchange in the territory, also encouraged by the government research DeFi.

Request more info about Australia crypto license

Requirements for obtaining a cryptocurrency license in Australia

Australian Transaction Reporting and Analysis Center (AUSTRAC) conducts registration and verification of a cryptocurrency company based on which it issues AFSL (Australian Financial Services License) for the provision of crypto services.

Mandatory requirements of this jurisdiction for obtaining an Australia crypto license:

  • Registration of a legal entity with the state authorities
  • Passing the inspection of the company’s officials
  • Implementation of AML/CTF policies, rules, and measures, keeping records of KYC procedures (up to 7 years), and transactions (exchange/trade) over $10k are tracked.
  • Capital requirements depend on the nature of the business
  • Confirmation of safety standards. The company must demonstrate that it has taken all measures to protect customer assets from hacking and withdrawal of funds
  • A detailed business plan describing the nature of the operations to be conducted (trading, exchange, storage), the risks involved, and the possibility of further business development
  • Reporting, balance sheet, where payment of all taxes will be indicated

Procedure for Obtaining Cryptocurrency License Registration in Australia

  • Stage 1

Collect company documents

  • Determine the nature of the company’s business and, the type of services offered (exchange, exchanger, custodial services, ICO)
  • Choose a name for the company (during registration there will be a plagiarism check)
  • Collect all documents (passports, confirming professional reputation) of managers, founders, and beneficiaries of the company.
  • Stage 2

Company Opening

  • Filling in the registration form
  • Submission of company documents to the Registrar (BRS)
  • Entering the company in the Registry and obtaining a number

The whole process can take around 14 working days.

  • Stage 3

Analysis of submitted documents by the Regulator

  • Regulator’s review of the fulfillment of all Australia crypto license requirements (up to 3 months, and for clarification of additional details, the term can be extended for another month).
  • Stage 4

Receipt of decision from state authorities

  • Issuance or denial of authorization for the requested type of operations.
    It is possible to reapply for a license (if it has been denied). The license validity period must be renewed every 3 years.

Setting up a cryptocurrency company in Australia

In Australia, a crypto license is only issued to a legal entity registered in the jurisdiction. As this indicates that the company will adhere to all anti-money laundering and financial fraud regulations.

The process of formalizing a crypto company consists of such steps:

  1. Choosing the type of operations that the company will offer to customers
  2. Decide on the organizational and legal form. The optimal solution will be the registration of a limited liability company (LLP), there is an opportunity to open a branch or representative office. For small businesses (turnover up to 2 million AUD), it is possible to open a private company.
  3. Come up with a name for the crypto firm, and check the registry for a similar name.
  4. Collect identification data on shareholders, managing managers, beneficiaries
  5. Determine the legal address
  6. Create a package of documents on the company
  7. Registration with the Australian Government’s Business Registration Service (BRS).
  8. Registration with the Australian Taxation Office (ATO) and Social Services.
  9. Open an account in a local bank (the largest bank is National Australia Bank).
  10. Pay all Australia crypto license fees, depending on several factors, including the type of business operations, and type of company (from $474).

Crypto license consultant in Australia


Alina Skidan


For all those wishing to master the digital market in Australia, it is necessary to go through the process of obtaining an Australian crypto exchange license. Since according to the legislation operations with the purchase/sale, and use of smart contracts are equated to the provision of financial products, they are subject to licensing.

The process consists of several steps and requires submission to the Regulator of a package of documents consisting of:

  • A business forecast, which clearly states what the company’s goals are and how it intends to cope with the risks and instability of the crypto sphere
  • Rules of operations. It should describe how the company will fulfill KYC, report suspicious transactions, discrepancies in client documents, and risk assessment system to the regulator. Cryptocurrency exchanges are required to keep records of all transactions (amount, purpose, who the recipient is) for 7 years.
  • Confirmation of qualifications and relevant experience of the founders (diplomas/certificates, CVs) of the managers, as well as confirmation of the absence of criminal records in the National Police of Australia.
  • Confirmation of financial stability of the company (balance sheets/reports), and ability to cover potential risks.

Applying for a license in Australia

  • Stage 1

Before applying to AUSTRAC, the firm is determined by the type of services:

  • Exchange/trading
  • Storage of crypto assets (providing access to cold wallets)
  • Initial Coin Offering (ICO)
  • Stage 2

Formalization of the company:

  • Choosing the legal form (Ltd, LLP) and name, collecting the incorporation documents, and filing for registration with the service (BRS)
  • Obtaining a registration number (ABN)
  • Stage 3

Applying for a license in AUSTRAC:

  • Filling out the application
  • Submission of the collected set of documents

AUSTRAC has the right to review the application for up to 3 months (or extend it for another month), in case of rejection the reason is not specified, there is a possibility to resubmit the application for a crypto license.

Cryptocurrency regulation in Australia

Australia has two regulators of the financial services sector: the country’s Securities and Investments Committee (ASIC) and the National Transfer Reporting and Analysis Center (AUSTRAC).

Each has its functions to ensure market transparency and investor protection.

The Australian Securities and Investments Commission (ASIC), operates under the ASIC Act :

  • regulates all financial services (crypto transactions are equated with financial services)
  • audits balance sheets, company reports
  • monitors financial transactions, investigates financial offenses, initiates legal proceedings on offenses, prosecutes, and fines individuals and legal entities.

The National Transfer Reporting and Analysis Center (AUSTRAC) began operations in 1989 and is responsible for:

  • combating financial fraud;
  • countering the financing of terrorism, etc
  • registration of crypto exchanges/exchanges/platforms

AUSTRAC has registered top exchanges such as CoinSpot, BTC Markets, Independent Reserve, eToro, Kraken, and Bybit.

Cryptocurrencies also use smart contracts, which are equivalent to traditional contracts and are regulated by the Electronic Transactions Act 1999.

In this jurisdiction, crypto businesses are subject to the rules and requirements of:

  • Corporations Act
  • ASIC Act
  • Consumer Protection Act
  • AML/KYC Regulations
  • Code of Conduct for Virtual Currencies

Taxation of cryptocurrencies in Australia

For a cryptocurrency company in Australia, there are standard tax rates as for financial companies, namely:

  • corporate tax from 25% (annual turnover up to 75 thousand AUD), above – 30%;
  • Capital Gains Tax (CGT) – depends on the amount of income (up to $18,200 – 0% rate, 45% if the income is above $180,001, progressive scale of calculations depending on the amount of income received).

Declaration must be filed by October 31 or a fine of 75 times the amount will be issued.

The regulator also equates tokens, NFTs, and stablecoins to cryptocurrencies.

There is a 50% discount on CGT for holders of virtual assets for more than a year.

Transactions related to:

  • Receipt of salary in cryptocurrency
  • Selling your NFT
  • Payment for staking
  • Receipt of funds/coins from a hard fork

But their further sale is taxable.

Mining is equated to entrepreneurial activity with payment of all relevant taxes.

FAQ about cryptocurrency license in Australia

What is a crypto license in Australia?

A permit issued by the Regulator to operate a crypto business in Australia.

Is cryptocurrency legal in Australia?

Yes, it is legal. Financial products legislation applies to cryptocurrency transactions.

How to get a cryptocurrency license in Australia?

Submit the appropriate application and documentation package to AUSTRAC.

How much does it cost to obtain a cryptocurrency license in Australia?

Depends on the chosen type and type of activity of the company, and the nature of operations (trading/exchange/ICO).

Is cryptocurrency taxable in Australia?

Entrepreneurial activity is taxed: income tax and profit tax.

What is the new cryptocurrency law in Australia?

Australia is considering a new bill according to which the rules of licensing and storage of crypto-assets, as well as taxation will have to change.

How to open a cryptocurrency company in Australia?

Opening a company takes up to 2 weeks if you submit a complete application to the Australian Government Business Registration Service (BRS).

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