Crypto License in Australia

Australia is one of the most attractive jurisdictions for cryptocurrency businesses due to its transparent regulatory framework and simplified licensing procedures. With more than 400 registered crypto exchanges in Australia, the country provides a well-regulated and business-friendly environment for crypto entrepreneurs. If you are considering entering the Australian crypto market, obtaining a crypto license in Australia is a crucial step to operating legally.

Regulation of Cryptocurrencies in Australia

Is cryptocurrency legal in Australia?

Yes, cryptocurrency is legal in Australia. The Australian government recognizes digital currencies as property, and they are regulated under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

Is crypto regulated in Australia?

Yes, crypto exchanges in Australia must register with AUSTRAC and comply with strict AML/CFT regulations. Additionally, companies offering custodial services must obtain a financial services license from ASIC (Australian Securities and Investments Commission).

Is crypto mining legal in Australia?

Yes, crypto mining in Australia is legal and is treated as a business activity subject to taxation.

Advantages of Obtaining a Crypto Licence in Australia

Securing a cryptolicense in Australia comes with multiple benefits, making it a preferred destination for crypto startups and investors. Key advantages include:

• Legally: The Australian government provides clear regulations for crypto businesses, ensuring a stable and legally compliant operating environment.
• Prestigious: A prestigious jurisdiction that allows you to work unhindered and inspires confidence among partners.
• Mastering the global market:  Good reputation for the possibility of cooperation with customers around the world, especially in the Australian and Asian markets.
• Simple: No requirements for authorized capital and residency of beneficiaries, possibility of obtaining crypto registration remotely.
• Payment Solutions Availability: Possibility of opening an account with reliable Australian payment institutions

Crypto registration functionality in Australia

A digital currency exchange provider (DCE) registered with AUSTRAC is authorized to exchange:

• fiat money (Australian or foreign currency) to digital currency;
• digital currency into fiat money (Australian or foreign currency) as part of a digital currency exchange business.

Crypto registration is valid for 3 years, after which it is necessary to apply again for renewal of registration with AUSTRAC in order to continue providing crypto exchange services.

The cost of renewing crypto registration will be determined based on the legislation in force at the time of renewal.

Requirements for Obtaining a Crypto Licence in Australia

To register as a Digital Currency Exchange (DCE) in Australia, businesses must comply with the requirements set by AUSTRAC (Australian Transaction Reports and Analysis Centre). Key requirements include:

• Founder Requirements: Any individual or legal entity not listed in sanction lists and without any criminal record can be a founder. There are no residency requirements for the founder.
• Director Requirements: At least one director must have an Australian residence permit and experience in the FinTech sector.
• Office Requirements: A virtual office in Australia is sufficient, for which you can use the director’s residential address.
• AML/CFT Compliance: The company must develop AML/CFT documentation.
• Reporting Obligations: Classic accounting: monthly salary report, annual financial reporting and tax return filing. Reporting suspicious transactions as well as cash transactions that are equal to or greater than 10,000 AUD (or other currency equivalent).
• AML reporting: Crypto businesses must submit an annual AML report before March 31 for the previous year. The report will need to answer a number of questions and provide data for the regulator to check to what extent the company complies with AML requirements.

The Process and Timeline for Obtaining a Crypto Licence in Australia

The registration process for a crypto licence in Australia consists of several stages:

1. Company Formation (1 week): Registering the company and obtaining a business number.
2. Preparation of AML/KYC Policies (2 weeks): Drafting and implementing internal compliance policies.
3. Application to AUSTRAC (Up to 2 months): Completing required forms and submitting the application.
4. Review by AUSTRAC (Up to 3 months): AUSTRAC assesses the application and makes a decision.
5. Final Compliance Setup (1 week): Making necessary adjustments, appointing local directors if required, and obtaining an apostille for documents.

Taxation in Australia

Crypto businesses in Australia are subject to various tax obligations, including:

• Corporate Income Tax: 30% (or 25% for small businesses).
• Goods and Services Tax (GST): 10%, but crypto transactions between Australian residents are exempt.
• Withholding Tax: 30% on dividends paid to non-residents, which can be reduced under tax treaties.
• Personal Income Tax: Progressive rates from 0% to 45% depending on income.

Australia’s tax regime ensures that crypto businesses comply with financial regulations while benefiting from a structured legal framework.

Conclusion

Obtaining a crypto license in Australia provides businesses with legal certainty, access to financial services, and a reputable operating environment. With its well-defined regulatory structure, favorable business conditions, and straightforward licensing process, Australia remains a prime destination for crypto entrepreneurs. If you are planning to enter the crypto exchanges in Australia market, working with experienced legal advisors can help streamline the process and ensure full compliance with Australian laws.