Is crypto legal in Australia? Regulation & rules (2026)

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.

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.

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.

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.

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.

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.

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.

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 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.

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.

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.

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.