Is crypto legal in Australia?
Cryptocurrency is legal in Australia, but subject to regulatory restrictions.
Australia and New Zealand · AU · 8 of 9 dimensions sourced
Australia crypto policy at a glance
Stage of the central bank digital currency programme — research, pilot, or launched.
Whether crypto is legal, restricted, or banned for individuals and businesses.
“Many widely traded digital assets are financial products under current law and will remain so under the Government proposed law reform, meaning many providers require a financial services licence.”
Whether the jurisdiction licenses crypto/VASP service providers.
“any business that provides digital currency (cryptocurrency) exchange (DCE) services must be registered with AUSTRAC. It is an offence to provide digital currency exchange services without being registered with AUSTRAC.”
Rules governing stablecoin and e-money-token issuance.
“A graduated regulatory framework for stored value facilities like prepaid accounts, stablecoin issuers or wallets that hold customer funds.”
How crypto gains are taxed and reported, including OECD CARF participation.
“A CGT event occurs when you dispose of your crypto assets. You may make a capital gain or a capital loss if you sell, trade, gift, exchange or swap your crypto assets.”
How decentralized finance (DeFi) is treated by regulators.
“Decentralised finance (DeFi) uses smart contracts on a public blockchain to provide financial services, such as lending and trading, without traditional intermediaries. The Bank is monitoring developments in this area and their potential implications for the payments system and financial stability.”
Whether NFTs are addressed in regulation.
“Non-fungible tokens (NFTs) are unique digital identifiers and are a digital representation of a real-world asset, such as a photo or video. For tax purposes, NFTs are generally treated similarly to other crypto assets, including capital gains tax on disposal.”
Policy toward crypto mining — permitted, restricted, or banned.
Intensity of regulatory enforcement actions against crypto firms.
“ASIC is taking court action to protect investors from harms posed by crypto-asset offerings.”
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