Australian Crypto Licensing: Rules, Requirements, and What It Means for Traders

When you trade or run a crypto business in Australia, you're not just dealing with markets—you're dealing with Australian crypto licensing, the legal framework enforced by the Australian Securities and Investments Commission (ASIC) that requires crypto businesses to register, verify users, and report suspicious activity. Also known as crypto exchange registration, it’s not optional if you’re operating locally or targeting Australian customers. This isn’t about slowing down innovation—it’s about forcing transparency. If you’re using a crypto exchange, running a mining operation, or offering staking services to Australians, you need to be licensed or face fines, account freezes, or worse.

That’s where ASIC, Australia’s financial regulator that oversees crypto businesses under the Anti-Money Laundering and Counter-Terrorism Financing Act. Also known as Australian Securities and Investments Commission, it has cracked down hard since 2023. Exchanges like CoinSpot and Independent Reserve had to jump through hoops to get registered, while dozens of offshore platforms got blocked from marketing to Australians. The rules now demand full KYC, real-time transaction monitoring, and proof that customer funds are kept separate from company money. And it’s not just exchanges—wallet providers, DeFi platforms, and even crypto ATMs need to comply.

What about regular traders? If you’re just buying and holding Bitcoin or Ethereum, you don’t need a license. But if you’re earning more than $10,000 in crypto income a year, you’re on the radar for tax reporting—and ASIC shares data with the ATO. The real pressure is on businesses. In 2024, ASIC shut down three unlicensed crypto platforms for failing to report suspicious transfers. One was linked to ransomware payments. Another was laundering funds from Nigerian scams. The message is clear: if you’re not registered, you’re not just breaking rules—you’re enabling crime.

And it’s not just about money. AML compliance, the set of procedures crypto businesses must follow to detect and report money laundering. Also known as anti-money laundering rules, it now requires Australian crypto firms to track every transaction above $1,000 and flag any pattern that looks like structuring—like breaking large transfers into smaller ones to avoid detection. This isn’t just paperwork. It’s real-time surveillance. And if your platform doesn’t have the tech to do it, you won’t get licensed.

So what’s next? Australia is pushing for even tighter rules in 2025, including mandatory reporting of NFT transactions and stricter rules for stablecoin issuers. If you’re running a business, you need to act now. If you’re a trader, you need to know which exchanges are licensed—because the unlicensed ones are disappearing fast. Below, you’ll find real examples of how these rules are playing out: which platforms got shut down, which ones made the cut, and what happens when you ignore the system.