AUSTRAC vs ASIC: Who Regulates Crypto in Australia?
When people ask “is this exchange regulated?” in Australia, the honest answer is: it depends which regulator you mean. Two bodies share the job, they cover very different things, and confusing them is one of the most common — and costly — misunderstandings in Australian crypto.
AUSTRAC — the financial-crime regulator
AUSTRAC enforces Australia’s anti-money-laundering and counter-terrorism-financing (AML/CTF) laws. Any business that exchanges Australian dollars for crypto must register with AUSTRAC as a digital currency exchange (DCE) — it is illegal to operate one without registering.
A registered exchange must:
- Verify your identity (KYC) before you trade
- Maintain an AML/CTF compliance program
- Report large transactions (threshold transactions of A$10,000 or more) and any suspicious activity
This is why “Is it AUSTRAC-registered?” is the first question we ask of every platform. But note carefully what AUSTRAC registration is for: it’s about tracking financial crime, not protecting you as a consumer. AUSTRAC itself doesn’t authorise the sale of financial products or guarantee your money is safe.
ASIC — the financial-products regulator
ASIC (the Australian Securities and Investments Commission) regulates under the Corporations Act when a crypto asset or service is a financial product — for example a crypto fund, a derivative, or certain token arrangements. Businesses dealing in those need an Australian Financial Services Licence (AFSL), which brings obligations to act “efficiently, honestly and fairly,” provide dispute resolution, and meet custody standards.
ASIC also runs Moneysmart (consumer education and scam warnings) and takes enforcement action against unlicensed conduct and crypto scams. The catch today is that many plain crypto assets — like Bitcoin held directly — currently sit outside the financial-product regime, so an ordinary exchange may hold no AFSL at all.
The reform that changes this
Australia is closing that gap. In late 2025 Treasury released draft legislation to bring “digital asset platforms” and “tokenised custody platforms” under the AFSL regime, giving ASIC oversight of exchanges and custodians. Proposed triggers include platforms holding more than A$5 million in total client assets or A$1,500 per client, with a transition period.
As of mid-2026 this is still moving through the legislative process — consulted on, not yet enacted. When it commences, most exchanges will need both an AUSTRAC DCE registration and an ASIC licence. We cover the current state of play in Is cryptocurrency legal in Australia?.
The gap to remember
Until the reforms are law, here’s the trap: AUSTRAC registration alone does not make an exchange “fully regulated.” It means the platform follows anti-money-laundering rules — nothing more. There’s no government compensation scheme for crypto, and consumer protections for plain trading and custody remain thin. That’s exactly why we weight regulation heavily in our Trust Score and recommend self-custody for anything you can’t afford to lose.
General information only — not financial or legal advice. Regulation is changing; confirm the current position with AUSTRAC, ASIC and Treasury or a professional adviser.
General information only — not financial or tax advice. Verified 2026-07-31; details can change.