Crypto license in Australia Last update: October 2025 Bergerslegal provides legal support for crypto businesses entering the Australian market, including registration with AUSTRAC as a Digital Currency Exchange (DCE), AML/CTF structuring, and ongoing compliance advisory. We assist companies in building legally sustainable operations aligned with Australian financial regulations. Australia operates a strict compliance-based model for crypto businesses. Instead of issuing a traditional crypto license, the jurisdiction requires mandatory registration with AUSTRAC for entities providing digital currency exchange services. Overview of crypto regulation in Australia In Australia, businesses dealing with cryptocurrency—particularly exchange services between fiat and digital assets—must register as a Digital Currency Exchange (DCE) with AUSTRAC. This framework is built around: mandatory registration rather than licensing strict AML/CTF compliance requirements continuous regulatory supervision integration with financial intelligence monitoring systems Crypto assets are not prohibited and are widely used, but all service providers must operate within a controlled compliance environment. What is AUSTRAC AUSTRAC (Australian Transaction Reports and Analysis Centre) is Australia’s financial intelligence authority responsible for monitoring financial activity and preventing financial crime. Unlike traditional financial regulators, AUSTRAC does not issue licenses in the classical sense. Instead, it: registers digital currency exchange providers supervises AML/CTF compliance monitors financial transactions cooperates with law enforcement agencies Since 2018, crypto exchanges operating in Australia must be registered with AUSTRAC before providing services. Activities requiring AUSTRAC registration Registration as a DCE is required for businesses that provide: exchange of cryptocurrency for fiat currency exchange of fiat currency for cryptocurrency operation of online crypto trading platforms OTC (over-the-counter) crypto trading services crypto ATM operations (cash-to-crypto and crypto-to-cash) Any business facilitating conversion between digital assets and fiat falls within this requirement. Key features of AUSTRAC DCE registration Regulator: AUSTRAC Legal form: registration (not a traditional license) Requirement: mandatory before operations Scope: crypto-to-fiat exchange services Compliance: strict AML/CTF obligations Supervision: ongoing and continuous Recognition: high international credibility Advantages of operating in Australia Australia is considered a highly reputable jurisdiction with a strong regulatory framework. Key advantages High regulatory credibility  Strong international reputation and compliance alignment Clear legal framework  Defined obligations for crypto businesses Access to developed financial infrastructure  Established banking and financial ecosystem Trust from partners and institutions  AUSTRAC registration increases credibility with counterparties Mature compliance environment  Clear AML/CTF expectations and enforcement Disadvantages and limitations Key considerations High compliance burden Continuous reporting obligations Strict AML/CTF requirements Increased operational costs Regulatory scrutiny and audits Australia is not suitable for businesses seeking low-regulation environments. Requirements for AUSTRAC registration Before applying, a company must establish a full compliance framework. Core requirements registered legal entity defined business model and risk assessment AML/CTF program tailored to the business KYC procedures for customer identification transaction monitoring system internal controls for detecting suspicious activity appointment of a compliance officer staff training program documentation and reporting procedures The AML/CTF program must be customized and aligned with the company’s operations. How to obtain a crypto license in Australia Although commonly referred to as a “crypto license,” the process is formally a registration procedure. Step-by-step process 1. Business model assessment  Determine whether the activity qualifies as a digital currency exchange 2. Company setup  Register a legal entity and define operational structure 3. AML/CTF program development  Prepare internal compliance policies and risk management procedures 4. Implementation of compliance systems  Set up KYC, transaction monitoring, and reporting mechanisms 5. Submission to AUSTRAC  Apply for DCE registration with full documentation 6. Registration approval  Company is added to the AUSTRAC register and may begin operations AML/CTF obligations After registration, companies must continuously comply with regulatory requirements. Key obligations ongoing maintenance of AML/CTF program customer identification and verification (KYC) monitoring of transactions reporting suspicious matters (SMR) reporting threshold transactions (TTR) maintaining records and documentation periodic updates of customer data internal audits and independent reviews continuous staff training Post-registration compliance AUSTRAC requires ongoing supervision and control. Companies must: update internal policies when business changes maintain accurate records respond to regulatory requests undergo compliance reviews ensure operational transparency Failure to comply may result in: financial penalties suspension of operations deregistration legal enforcement actions Taxation crypto companies in Australia Crypto taxation in Australia is well-defined and strictly enforced. Key tax aspects crypto transactions are taxable events business income is subject to corporate tax capital gains tax may apply GST treatment depends on transaction type mining and trading profits are taxable detailed reporting is required Tax obligations depend on the nature of the activity and company structure. Banking and operational considerations Operating in Australia requires strong compliance readiness. Banks typically require: clear business model full AML/CTF framework transparent ownership structure transaction monitoring capabilities documented source of funds Well-prepared companies have better access to financial services. Conclusion Australia provides a highly regulated and credible environment for crypto businesses. While entry requires significant compliance preparation, AUSTRAC registration offers strong legal standing and international recognition. This jurisdiction is best suited for companies aiming for long-term, compliant operations with access to institutional partners. Bergerslegal supports clients through the entire process, from regulatory analysis and AML/CTF program development to AUSTRAC registration and ongoing compliance management. | Bergers Legal

Crypto license in Australia

Last update: October 2025

Bergerslegal provides legal support for crypto businesses entering the Australian market, including registration with AUSTRAC as a Digital Currency Exchange (DCE), AML/CTF structuring, and ongoing compliance advisory. We assist companies in building legally sustainable operations aligned with Australian financial regulations.

Australia operates a strict compliance-based model for crypto businesses. Instead of issuing a traditional crypto license, the jurisdiction requires mandatory registration with AUSTRAC for entities providing digital currency exchange services.

Overview of crypto regulation in Australia

In Australia, businesses dealing with cryptocurrency—particularly exchange services between fiat and digital assets—must register as a Digital Currency Exchange (DCE) with AUSTRAC.

This framework is built around:

mandatory registration rather than licensing
strict AML/CTF compliance requirements
continuous regulatory supervision
integration with financial intelligence monitoring systems

Crypto assets are not prohibited and are widely used, but all service providers must operate within a controlled compliance environment.

What is AUSTRAC

AUSTRAC (Australian Transaction Reports and Analysis Centre) is Australia’s financial intelligence authority responsible for monitoring financial activity and preventing financial crime.

Unlike traditional financial regulators, AUSTRAC does not issue licenses in the classical sense. Instead, it:

registers digital currency exchange providers
supervises AML/CTF compliance
monitors financial transactions
cooperates with law enforcement agencies

Since 2018, crypto exchanges operating in Australia must be registered with AUSTRAC before providing services.

Activities requiring AUSTRAC registration

Registration as a DCE is required for businesses that provide:

exchange of cryptocurrency for fiat currency
exchange of fiat currency for cryptocurrency
operation of online crypto trading platforms
OTC (over-the-counter) crypto trading services
crypto ATM operations (cash-to-crypto and crypto-to-cash)

Any business facilitating conversion between digital assets and fiat falls within this requirement.

Key features of AUSTRAC DCE registration

Regulator: AUSTRAC
Legal form: registration (not a traditional license)
Requirement: mandatory before operations
Scope: crypto-to-fiat exchange services
Compliance: strict AML/CTF obligations
Supervision: ongoing and continuous
Recognition: high international credibility

Advantages of operating in Australia

Australia is considered a highly reputable jurisdiction with a strong regulatory framework.

Key advantages

High regulatory credibility
Strong international reputation and compliance alignment
Clear legal framework
Defined obligations for crypto businesses
Access to developed financial infrastructure
Established banking and financial ecosystem
Trust from partners and institutions
AUSTRAC registration increases credibility with counterparties
Mature compliance environment
Clear AML/CTF expectations and enforcement

Disadvantages and limitations

Key considerations

High compliance burden
Continuous reporting obligations
Strict AML/CTF requirements
Increased operational costs
Regulatory scrutiny and audits

Australia is not suitable for businesses seeking low-regulation environments.

Requirements for AUSTRAC registration

Before applying, a company must establish a full compliance framework.

Core requirements

registered legal entity
defined business model and risk assessment
AML/CTF program tailored to the business
KYC procedures for customer identification
transaction monitoring system
internal controls for detecting suspicious activity
appointment of a compliance officer
staff training program
documentation and reporting procedures

The AML/CTF program must be customized and aligned with the company’s operations.

How to obtain a crypto license in Australia

Although commonly referred to as a “crypto license,” the process is formally a registration procedure.

Step-by-step process

1. Business model assessment
Determine whether the activity qualifies as a digital currency exchange

2. Company setup
Register a legal entity and define operational structure

3. AML/CTF program development
Prepare internal compliance policies and risk management procedures

4. Implementation of compliance systems
Set up KYC, transaction monitoring, and reporting mechanisms

5. Submission to AUSTRAC
Apply for DCE registration with full documentation

6. Registration approval
Company is added to the AUSTRAC register and may begin operations

AML/CTF obligations

After registration, companies must continuously comply with regulatory requirements.

Key obligations

ongoing maintenance of AML/CTF program
customer identification and verification (KYC)
monitoring of transactions
reporting suspicious matters (SMR)
reporting threshold transactions (TTR)
maintaining records and documentation
periodic updates of customer data
internal audits and independent reviews
continuous staff training

Post-registration compliance

AUSTRAC requires ongoing supervision and control.

Companies must:

update internal policies when business changes
maintain accurate records
respond to regulatory requests
undergo compliance reviews
ensure operational transparency

Failure to comply may result in:

financial penalties
suspension of operations
deregistration
legal enforcement actions

Taxation crypto companies in Australia

Crypto taxation in Australia is well-defined and strictly enforced.

Key tax aspects

crypto transactions are taxable events
business income is subject to corporate tax
capital gains tax may apply
GST treatment depends on transaction type
mining and trading profits are taxable
detailed reporting is required

Tax obligations depend on the nature of the activity and company structure.

Banking and operational considerations

Operating in Australia requires strong compliance readiness.

Banks typically require:

clear business model
full AML/CTF framework
transparent ownership structure
transaction monitoring capabilities
documented source of funds

Well-prepared companies have better access to financial services.

Conclusion

Australia provides a highly regulated and credible environment for crypto businesses. While entry requires significant compliance preparation, AUSTRAC registration offers strong legal standing and international recognition.

This jurisdiction is best suited for companies aiming for long-term, compliant operations with access to institutional partners.

Bergerslegal supports clients through the entire process, from regulatory analysis and AML/CTF program development to AUSTRAC registration and ongoing compliance management.