Rules and Regulation
Crypto Regulation in Australia: Is Crypto Legal and What Changes in 2026 and 2027
Key points
- Crypto is legal in Australia and taxed as property, not currency.
- AUSTRAC registers exchanges, and the travel rule has applied to most crypto transfers since 1 July 2026.
- ASIC’s licensing deadline for crypto firms under its no-action position was 30 September 2026.
- The Digital Assets Framework Act 2026 starts in April 2027 and brings platforms that hold your crypto under AFS licensing.
- Gains that accrue from 1 July 2027 are taxed under new CGT rules.
Is crypto legal in Australia in 2026?
Yes. Crypto is legal to buy, hold and sell in Australia, and it is becoming more regulated each year, which is good news for everyday investors. As of November 2026, there are three layers of rules that matter to you: who can run an exchange, what they must check before you trade, and how your gains are taxed.
Crypto is not legal tender in Australia, so a shop does not have to accept it. For tax purposes the ATO treats it as property, which is why selling or swapping it usually creates a capital gain or loss (ATO: Crypto asset investments).
Who regulates crypto in Australia?
| Regulator | What it covers | Why it matters to you |
|---|---|---|
| AUSTRAC | Registration of crypto businesses, identity checks and anti money laundering rules | Only use exchanges registered with AUSTRAC |
| ASIC | Crypto products and services that are financial products, and from April 2027 digital asset platforms | More platforms need a licence, with rules on how they hold your crypto |
| ATO | Tax on crypto gains, losses and income | Keep records of every buy, sell and swap |
| Treasury | Policy and new laws | Sets the direction for the next round of rules |
ASIC’s own summary of when a crypto asset is a financial product is in ASIC INFO 225: Digital assets, financial products and services. The tax side is set out by the ATO: Crypto asset investments.
What changed for crypto exchanges in 2026?
AUSTRAC: virtual asset service providers
From 31 March 2026, Australia’s anti money laundering reforms replaced the old term digital currency exchange with virtual asset service provider. Exchanges that were already registered were rolled over automatically, and new services such as crypto to crypto swaps and custody came into the regime, with most new obligations applying from 1 July 2026 (AUSTRAC: AML/CTF transitional rules 2026; AUSTRAC: virtual asset designated services).
The travel rule
Since 1 July 2026, when an Australian exchange sends crypto for you, it must collect and pass on details about the sender and receiver. That can mean a few extra questions when you withdraw to your own wallet. It is not a ban on self custody. See Sarn Elliott’s explainer on the AUSTRAC travel rule (June 2026) for what to expect.
ASIC licensing deadline
ASIC set 30 September 2026 as the final date for crypto businesses relying on its no-action position to apply for or vary an Australian financial services licence. From 1 October 2026, firms that needed a licence and had not applied risk penalties (ASIC: final call before the 30 September 2026 licensing deadline).
The Digital Assets Framework Act 2026
The biggest change is still ahead. The Corporations Amendment (Digital Assets Framework) Act 2026 passed Parliament on 1 April 2026 and received Royal Assent on 8 April 2026 (Parliament of Australia: Digital Assets Framework Bill, passed 1 April 2026). It is due to commence in April 2027 (ASIC: roadmap for digital assets law reform (2026)).
- Two new financial products. Digital asset platforms (exchanges and services that hold crypto for customers) and tokenised custody platforms.
- Licences. Operators will generally need an Australian financial services licence to run the platform.
- Custody standards. ASIC will set asset holding standards and transaction and settlement standards, so there are clear rules for how your crypto is kept.
- Disclosure. Platforms will need tailored disclosure and published platform rules.
ASIC released its draft regulatory guide for consultation on 15 October 2026 (ASIC CP 392 draft regulatory guide, 15 October 2026). Details can still change before April 2027, so treat this as the direction of travel rather than the final rulebook.
What the rules mean for you as an investor
- Check registration before you deposit. Search the exchange on the AUSTRAC register and look for its ASIC licence details as the new regime starts.
- Expect identity checks. Photo ID, proof of address and questions about large transfers are now standard.
- Keep your own records. Exchanges report to the ATO, but you are responsible for your cost base on every trade.
- Learn self custody. Regulation lowers platform risk, it does not remove it. A hardware wallet you control is still the way to hold long term coins.
- Know what is still not covered. Offshore platforms, unregistered apps and people offering signals in chat groups sit outside most of these protections.
In the 5-step SHIFT Method (Set your plan in writing, Hold Bitcoin as your core, Invest in on-chain businesses with real revenue, Filter every coin before you buy, Take profits on the way up), regulation sits in Step S: Set your plan in writing. Your plan names which registered platforms you use, where long term coins are stored and how you will keep tax records, so new rules become a checklist rather than a worry.
How crypto tax fits with regulation
For most investors, crypto is a capital gains tax asset. Selling, swapping or spending it is a taxable event, and staking rewards are ordinary income (ATO: Crypto asset investments). Gains that accrue from 1 July 2027 move from the 50 percent discount to cost base indexation with a 30 percent minimum tax on certain gains. Our 2027 capital gains tax changes explained covers what that means for coins you already hold, and the crypto tax guide for Australia covers the basics.
Ben explains the Australian tax changes announced in 2026 and what they mean for long term crypto investors. From the Ben Simpson YouTube channel.
Key points from the video
- The video explains the Australian Government’s proposed capital gains tax changes, which Ben says were planned to start on 1 July 2027 and were not yet law when he recorded it.
- As described in the video, the 50 percent CGT discount for assets held over 12 months would be replaced by indexing the cost base to CPI, with a 30 percent minimum tax on capital gains.
- Gains up to 1 July 2027 would still be assessed under the current rules, so the video notes there is no need to rush to sell.
- Ben notes that self-managed super funds were not affected by the proposal as described.
- Ben is clear that he is not a registered tax adviser and suggests speaking with your own accountant about structures.
When would the proposed CGT changes start?
According to the video, the proposal was planned to start on 1 July 2027, subject to it passing into law.
Would SMSFs be affected?
Ben says self-managed super funds were not affected by the proposal as described in the video.
Summary of Ben Simpson’s video on the proposed 2027 capital gains tax changes for Australian crypto investors, written from the video transcript. General education only.
What Collective Shift is, and is not
Collective Shift is research and education. We are not an exchange, we never hold your crypto, and we never ask for seed phrases. Our members use registered Australian exchanges, including our education partners Coinbase, Swyftx and CoinSpot, and keep long term holdings in their own wallets. General guidance on crypto risk is at Moneysmart: Crypto assets.
Want a plan that stays on the right side of the rules?
Collective Shift has helped 1,000+ members build a written crypto plan with the 5-step SHIFT Method, live analyst sessions and the Live Crypto Portfolio. Founded in Melbourne in 2020 by TEDx speaker Ben Simpson, rated 4.8 out of 5 from 135+ Trustpilot reviews, and Platinum and Accelerator carry a 14-day money-back guarantee.
Quick questions
Is crypto legal in Australia?
Yes. Buying, holding and selling crypto is legal in Australia. Businesses that exchange crypto for Australian dollars must be registered with AUSTRAC, and gains are generally taxed under the capital gains tax rules.
Is Bitcoin legal in Australia?
Yes. Bitcoin is legal to buy, hold, sell and use in Australia. It is treated as property for tax purposes, not as Australian currency, so selling or swapping it is generally a capital gains tax event.
Who regulates crypto in Australia?
Several bodies share the job. AUSTRAC registers crypto businesses and enforces anti money laundering rules, ASIC regulates crypto products and services that are financial products, the ATO sets the tax treatment, and Treasury writes the policy.
When do the new crypto exchange laws start?
The Corporations Amendment (Digital Assets Framework) Act 2026 passed Parliament on 1 April 2026 and commences in April 2027. From then, most platforms that hold crypto for customers need an Australian financial services licence.
What is the crypto travel rule in Australia?
It requires crypto businesses to collect and pass on identifying details about the sender and receiver when they transfer crypto for customers. For most newly regulated virtual asset services it applies from 1 July 2026.
Do I need to pay tax on crypto in Australia?
Generally yes, when you sell, swap, gift or spend crypto. Most investors pay capital gains tax, and staking rewards are ordinary income. The rules for gains that accrue from 1 July 2027 change, so check the ATO guidance and a registered tax agent.
Written by Ben Simpson, founder of Collective Shift and TEDx speaker, and reviewed by Matt Willemsen, Director of Research. As of November 2026.
Published 2 November 2026. Updated 2 November 2026.
General information only, not personal financial advice. Collective Shift provides research and education. Consider your own circumstances and speak with a licensed financial adviser before acting.