Is Cryptocurrency legal in Australia?

The Legal Status of Digital Assets

Cryptocurrency is fully legal to buy, sell, and hold in Australia. However, it is not classed as “money” or “legal tender” (like the Australian Dollar). Instead, the Australian government treats digital assets as property and a form of capital asset.¹

Key Regulatory Frameworks:

1. Taxation (ATO): The Australian Taxation Office (ATO) views cryptocurrency as a capital asset. Most transactions (including trading one crypto for another) trigger a Capital Gains Tax (CGT) event.²
2. AML/CTF Regulation: Digital Currency Exchanges (DCEs) operating in Australia must be registered with AUSTRAC. They are required to verify the identity of their users and report suspicious transactions to combat money laundering and terrorism financing.³
3. Australian Consumer Law (ACL): If you are a business selling digital assets or NFTs, you must not engage in misleading or deceptive conduct. You are subject to the same consumer protection laws as any other retailer.
4. Financial Services Regulation (ASIC): Whether a specific crypto asset or Initial Coin Offering (ICO) falls under the Corporations Act depends on its features. If it mimics a traditional financial product (like a share or a managed investment scheme), it requires an Australian Financial Services License (AFSL).⁴

Use in Queensland Businesses

Queensland businesses can legally accept cryptocurrency as payment for goods and services. However, for tax and accounting purposes, the transaction value must be recorded in Australian Dollars at the time of the trade.

Developing a crypto-based business or need advice on digital asset compliance? Contact Bell & Senior to ensure your venture is structurally sound and regulatory compliant.