Crypto in Australia: The Complete Guide

AI summary

Cryptocurrency is fully legal in Australia, with a rapidly growing adoption rate—about 31% of adults now own some form of crypto. The sector is regulated by ASIC and AUSTRAC, with clear tax obligations enforced by the ATO, while new legislation through 2026 aims to strengthen consumer protections and provide regulatory clarity. Australians can freely buy, sell, and hold crypto using local or international exchanges, but are advised to use hardware wallets like Tangem for secure storage and to stay compliant with evolving rules around taxes, mining, and NFTs.

Cryptocurrency is legal in Australia, and the country has one of the most active crypto markets in the world. The main regulator overseeing the space is the Australian Securities and Investments Commission (ASIC), working alongside AUSTRAC (the Australian Transaction Reports and Analysis Centre) for anti-money laundering compliance. According to the 2025 Independent Reserve Cryptocurrency Index (IRCI), a record 31% of Australians now own some form of cryptocurrency, nearly one in three adults. That puts Australia among the top countries globally for crypto adoption.

The regulatory environment is evolving fast. ASIC has clarified that many widely traded digital assets are financial products under current law, meaning many providers require a financial services licence. New legislation is being phased in through 2026, bringing more structure and consumer protections to the space. For everyday Aussies, though, buying, holding, and selling crypto remains completely legal — just taxable. This guide covers everything you need to know: whether crypto is legal, how to buy it with Tangem, the best local exchanges, how taxes work, mining rules, NFTs, and where things are heading. Whether you're brand new to crypto or looking to level up, there's something here for you.

Key Takeaways

• Cryptocurrency is legal in Australia — people can buy, sell, trade, spend, and hold cryptocurrencies freely.
• The primary regulators are ASIC (investor protection, financial services) and AUSTRAC (anti-money laundering), with the ATO handling tax compliance.
• The ATO treats crypto as a capital asset, not foreign currency. Selling, swapping, or spending crypto triggers Capital Gains Tax (CGT). Tax authorities may tax mining, staking, and NFT activities as income.
• Bitcoin is the most commonly held cryptocurrency in Australia, with 70% of Australian crypto investors holding it. Ethereum, Dogecoin, XRP, Solana, and Cardano are also popular.
• Crypto mining is legal in Australia, with no specific mining licence required — though you'll need to stay on top of tax, electricity, noise, and zoning rules depending on your setup.
• Hardware wallets like Tangem are the safest way to store your crypto long-term. Keeping large amounts on exchanges puts your funds at custodial risk.

Is Crypto Legal in Australia?

Yes, crypto is fully legal in Australia. You can buy it, sell it, hold it, spend it, and trade it without breaking any laws. The government doesn't treat it as currency, though cryptocurrency is not recognised as legal tender in Australia and is not treated as "money" under Australian law. Instead, the ATO classifies it as a property asset, similar to shares.

Who regulates it?

Two agencies share the load:

• ASIC oversees crypto businesses that offer financial products or services. If a platform offers managed funds, derivatives, or custody services, it needs an Australian Financial Services Licence (AFSL).
• AUSTRAC handles AML (anti-money laundering) compliance. As of 2025, DCEs (digital currency exchanges) that swap fiat and crypto are required to register with AUSTRAC. From March 31, 2026, AUSTRAC's regulatory scope will expand to cover all digital asset service providers.

Which laws apply?

The key frameworks include the Corporations Act 2001, the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, and ASIC's updated guidance under Information Sheet 225 (INFO 225). Under proposed legislation, new products known as "digital asset platforms" and "tokenised custody platforms" would be regulated under the existing Corporations Act 2001, with providers required to hold an AFS Licence like any other financial services business.

What about a CBDC?

The Reserve Bank of Australia (RBA) indicates no immediate plans to issue a retail CBDC. However, it sees potential use cases for wholesale CBDCs and is currently undertaking various industry research projects to explore their economic benefits. 

How to Buy Cryptocurrency in Australia with Tangem

Tangem, as a hardware wallet, stores your crypto offline, away from hackers and exchange risks. You can use it to receive, store, and manage crypto after buying it through an exchange.

Step 1 – Choose a Crypto Exchange

You'll need an exchange to convert your Australian dollars into crypto. There are solid local and international options.

Local Australian exchanges:

• CoinSpot: Australia's biggest exchange with over 3 million users, founded in 2013. Great for beginners, with 500+ coins.
• Swyftx: Founded in Brisbane in 2018, beginner-friendly with competitive spreads and 440+ coins.
• Independent Reserve: Best for serious investors, SMSFs, and those making larger trades.
• BTC Markets:  Melbourne-based, reliable, and suitable for long-term holders.

International platforms:

• Binance: Massive selection of coins, very low fees, but AUD deposits work differently.
• Kraken: well-established, strong security, AUSTRAC-registered.
• Coinbase: Easy to use, trusted globally, AUSTRAC compliant.

Step 2 – Complete KYC and Verification

Before you can deposit money or trade, you'll need to verify your identity. Australia’s AML framework requires this by law. Documents you'll need:

• Australian driver's licence or passport
• Proof of address (utility bill or bank statement)
• Selfie or live video verification on some platforms

Australia has formally incorporated the crypto travel rule into national law through the 2024 AML/CTF Amendment Act, which modernises the country's AML/CTF framework and aligns it more closely with the latest FATF Recommendations. This is why KYC isn't optional; it's baked into the law.

Step 3 – Deposit Funds

Once verified, you can deposit AUD directly into your exchange account.

Local currency: Australian Dollar (AUD)

Common payment methods:

• PayID / OSKO (instant, free)
• Bank transfer / EFT
• BPAY
• Debit or credit card (usually has a small fee)
• POLi

Most local exchanges, like CoinSpot and Swyftx, offer free AUD deposits and withdrawals. International platforms sometimes charge conversion fees, so read the fine print first.

Step 4 – Buy Bitcoin or Altcoins

After you fund your account, you can place a buy order. For most beginners, a market order (buying at the current price) is the simplest option.

Popular coins to start with:

• BTC (Bitcoin) – The most held crypto in Australia
• ETH (Ethereum) – The second biggest by market cap
• SOL (Solana) – Fast-growing, popular with younger investors
• XRP – High liquidity, popular for transfers
• DOGE, ADA, USDT – Also widely held among Aussies

After buying, transfer your crypto to your Tangem wallet rather than leaving it on the exchange. This is the safest move for anything you're holding long-term.

Best Crypto Exchanges in Australia

Swyftx, Coinspot, Coinjar, and Independent Reserve are all great Australian options, while international exchanges like Binance offer low trading fees and a significant range of features.

Top Platforms Comparison

All top Australian crypto exchanges register with AUSTRAC, Australia’s anti-money laundering regulator. When choosing, look for an exchange with ISO 27001 certification (CoinSpot, Swyftx, and Independent Reserve all have it), clear fee structures, and reliable AUD on- and off-ramps.

How to Store Crypto Safely in Australia

Buying crypto is step one. Properly storing it is where many people drop the ball.

Risks of Keeping Crypto on Exchanges

Exchanges are convenient, but leaving your crypto there long-term is risky for a few reasons:

• Custodial risk: When your crypto sits on an exchange, the exchange technically controls it. If the exchange goes under like FTX did globally, you could lose everything.
• Hacks: Attackers have compromised even large exchanges. More than $3.3 billion was stolen from crypto firms in the first half of 2025 alone, with individual users' wallets accounting for 23% of those losses.
• Withdrawal freezes: Some exchanges restrict withdrawals during periods of financial stress, leaving users locked out of their own funds.

The phrase you'll hear in crypto circles is "not your keys, not your coins." If you don't control your private keys, you don't fully own your crypto.

Types of Wallets

1. Software wallets (also called hot wallets) are apps on your phone or computer. They're convenient for regular use and small amounts, but they're always connected to the internet, which makes them more vulnerable. Popular options include Trust Wallet, MetaMask, and Exodus. They're fine for active crypto trading, but not ideal for long-term storage.
2. Hardware wallets store your private keys offline, on a physical device. Because they are not connected to the internet, hackers cannot reach them remotely. For any serious amount of crypto, this is the gold standard.

Tangem is one of the best hardware wallet options available in Australia. It comes in the form of a credit card-sized device — no screens, no cables, no complicated setup. You tap it to your phone via NFC to approve transactions. It's waterproof, durable, and about as simple as hardware wallets get. For Australian crypto holders who want maximum security without the technical headache, Tangem is an excellent choice.

Is Crypto Taxed in Australia?

Yes, and the ATO takes it seriously. The ATO treats crypto as a capital asset. Selling, swapping, or spending crypto triggers Capital Gains Tax. Tax authorities may treat mining, staking, and NFT activities as income. You must keep records of every transaction for at least five years.

Here's how it works in plain terms:

• Capital Gains Tax (CGT): Applies when you sell, trade, swap, or spend crypto. The profit (or loss) is included in your annual income tax return.
• Income tax: Applies to crypto earned through staking rewards, mining, airdrops, or DeFi interest. You declare it at its AUD value on the day you received it.
• Anyone who holds a cryptocurrency for over 12 months qualifies for a 50% discount on their CGT gain. This is a big deal: holding Bitcoin or ETH for over a year effectively halves your tax bill on the gain.
• Transferring crypto between your own wallets is not a taxable event.
• The ATO runs data-matching programs with major exchanges, so they can see your transaction history even if you don't report it.

Tax authority: Australian Taxation Office (ATO)

How to Calculate Crypto Tax

The ATO allows individual investors to use FIFO (First In, First Out) as an accounting method for calculating which crypto units are disposed of when you sell. You can also use HIFO (Highest In, First Out) or specific identification, depending on the case.

The basic formula: Capital Gain = Sale Price − Cost Base (purchase price + fees)

You report all crypto gains and losses in your annual tax return, which covers the period 1 July to 30 June. The deadline for individuals lodging their own return is October 31. If numbers are getting complicated, especially with staking, DeFi, or multiple wallets, crypto tax software like Koinly or CoinTracker can automate most of the heavy lifting by importing your transaction history directly from exchanges.

Is Crypto Mining Legal in Australia?

Yes, mining is fully legal. There is no crypto-specific mining licence in Australia. However, depending on your setup, commercial-scale operations can trigger local council planning or development approvals, especially where there's high power draw, heat extraction, or industrial activity.

Mining Regulations

Individuals and businesses engaged in crypto mining must adhere to Australian Taxation Office (ATO) guidelines, comply with energy consumption standards, and other relevant laws.

Key things to think about:

• Energy costs: Australia's electricity prices are relatively high compared to countries like the US or Canada, which affects profitability. Several large mining farms in regions such as Western Australia have transitioned to solar and wind energy, reducing their carbon footprint and cutting costs.
• GST: A cryptocurrency miner would generally be required to register for GST if their annual GST turnover is A$75,000 or more.
• Noise and heat: For home mining rigs, strata or landlord permissions may apply, and local noise regulations are worth checking.
• Environmental rules: Mining operations at scale face increasing scrutiny around power usage and environmental impact.

How to Mine Crypto in Australia

Mining Bitcoin at home isn't really viable in 2026; the network difficulty is too high, and Australian electricity is too expensive. But there are still profitable options:

Hardware options:

• ASIC miners (Antminer, Whatsminer) for Bitcoin and other SHA-256 coins
• GPU rigs for coins like Ethereum Classic (ETC) or Kaspa (KAS)
• If ASICs are out of budget, GPU mining of smaller coins can still work

Mining pools: Going solo means waiting a long time for rewards. Mining pools combine your hash rate with thousands of other miners, giving you smaller but more regular payouts. Popular pools include AntPool, ViaBTC, F2Pool, and BTC.com.

Wallet for rewards: Once you're up and running, you'll need a wallet address to receive your mining rewards. Your Tangem hardware wallet works perfectly here — rewards get sent directly to your cold wallet, keeping them secure from day one.

How to Buy NFTs in Australia with Tangem

NFTs (non-fungible tokens) are digital assets that prove ownership of something unique — art, music, collectibles, game items, and more. Buying them in Australia is straightforward once you have the basics set up.

Step 1: Set up your Tangem wallet. You'll need a self-custody wallet to interact with NFT marketplaces. Tangem works directly with Web3, so no extra setup is needed.

Step 2: Buy ETH or SOL. Most NFTs run on the Ethereum or Solana blockchains. Buy your preferred coin from an Australian exchange like CoinSpot or Swyftx, then transfer it to your Tangem wallet.

Step 3: Connect to an NFT marketplace. Platforms like OpenSea (Ethereum), Magic Eden (Solana), and Blur (Ethereum) are the most popular. Connect your Tangem wallet by scanning the QR code or using WalletConnect.

Step 4: Browse and buy. Find an NFT you want, review the price (listed in ETH, SOL, or sometimes AUD), and confirm the transaction by tapping your Tangem card to your phone.

Step 5: Store securely. Your NFT now lives in your self-custody Tangem wallet. You fully own it — no exchange can freeze or lose it on your behalf.

Tax note: Disposal of NFTs is a taxable event in Australia. Under ATO rules, tax authorities may treat mining, staking, and NFT activities as income. If you create and sell NFTs as a business, that income is taxed at your marginal rate.

Future of Crypto in Australia

Australia is building towards being a proper player in the global digital asset space, and the regulatory direction is clear.

• Regulatory outlook: Australia is drafting legislation to align with similar efforts in the UK and the EU, whose Markets in Crypto-Assets (MiCA) Regulation came into force in 2023. The Treasury's proposed Digital Asset Platform (DAP) framework will bring exchanges and custodians under formal financial services law, giving consumers stronger protections and businesses clearer rules to operate under. ASIC has granted a sector-wide no-action position until 30 June 2026, giving businesses time to apply for licences and come into compliance.
• Institutional adoption: More Aussie super funds and financial firms are entering crypto, particularly through ETFs and spot Bitcoin exposure. AMP became the first Australian superannuation fund to include Bitcoin in its portfolio in late 2024, and others are expected to follow as regulatory clarity improves.
• CBDC and tokenisation: While a retail CBDC isn't on the immediate horizon, the RBA is actively researching wholesale tokenised asset markets through Project Acacia. ASIC has also reinforced that Australian law applies to offshore and decentralised structures if they are marketed or sold to local users, warning that global platforms cannot rely on geography to avoid domestic oversight. This signals Australia is serious about shaping how the technology develops here, not just watching from the sidelines.

FAQ about Crypto in Australia

Is Bitcoin legal in Australia?

Yes. Cryptocurrency is legal in Australia, meaning people can buy, sell, trade, spend, and hold cryptocurrencies, including Bitcoin. The law does not recognize Bitcoin as legal tender, but it fully permits people to use and trade it. The ATO classifies it as a CGT asset.

Do you pay tax on crypto in Australia?

Yes. Crypto is taxed as property, so capital gains tax applies when you sell, trade, or spend it. Income from staking, airdrops, or interest must be reported as taxable income. If you've held your crypto for more than 12 months before selling, you get a 50% discount on your capital gain. The ATO actively monitors exchange data, so it's important to report accurately.

What is the best crypto exchange in Australia?

It depends on what you need. Swyftx is a strong pick thanks to its competitive trading fees, ISO 27001 certification, and excellent customer support. CoinSpot is Australia's largest exchange with the widest selection of coins, while Independent Reserve is the go-to for SMSFs and larger investors. For most beginners, CoinSpot or Swyftx are the easiest starting points.

Is crypto mining legal in Australia?

Yes, it is perfectly legal to mine cryptocurrency in Australia. There's no specific mining licence required, but miners must comply with ATO tax obligations, electricity regulations, and, at commercial scale, potentially council planning rules. Energy costs in Australia are higher than in some other countries, so running the numbers before investing in hardware is a smart move.