Buy Bitcoin in Australia

Crypto Regulation in Australia

Australia does not have one single crypto licence that covers all platforms. Most spot crypto platforms sit inside the anti money laundering perimeter, and some crypto products can also fall under financial services laws depending on how they are packaged and offered.

For BankToBTC users, regulation shows up as funding friction. You see it as ID checks, deposit holds, bank warnings, and extra review when you send money to an exchange for the first time or in larger amounts.

The regulators that matter for funding from Australian banks

AUSTRAC and AML registration: If a business provides digital currency exchange services in Australia, it must enrol with AUSTRAC and it cannot start providing those services until it is also registered and AUSTRAC confirms that registration. This is an AML gateway. It is not a guarantee of solvency, custody safety, or investment suitability.

What AUSTRAC registration does and does not mean: AUSTRAC registration signals the business is expected to run KYC, transaction monitoring, and reporting under the AML framework. It does not mean the platform is regulated like a bank, and it does not mean losses from hacks, insolvency, or market moves are covered.

When ASIC rules apply to crypto platforms and products

ASIC and financial services law: ASIC's INFO 225 guidance explains that some digital asset arrangements can be treated as financial products or financial services under Australian law, depending on the rights promised and how the service operates. This is why some "earn", yield, staking style products, and custody structures can trigger licensing and conduct obligations, even if the platform is already meeting AML requirements.

ASIC has been updating this guidance: ASIC consulted on updates to INFO 225 in late 2024 and has since published updated guidance in 2025 to clarify how existing laws apply. For users, the practical takeaway is that product access and feature availability can change as platforms adjust their Australian offering to fit the legal perimeter.

What is changing next for platforms and custody

Treasury and the digital asset platforms regime: Treasury has set out a direction to regulate certain digital asset platform activities and custody more like financial services, using the existing framework as a base. Draft legislation has been consulted on. Over time, this aims to tighten expectations for platforms holding assets for Australians and to standardise minimum obligations.

Why Australian bank transfers and PayID deposits get held or blocked

Most deposit issues are banking controls, not exchange bugs. Australian banks have tightened scam and fraud settings, especially for first time payments to new payees.

• First time PayID and Osko payments can trigger bank holds. You may need to approve the transfer in app or confirm it is not a scam before it releases.
• Brand name vs legal entity mismatches cause warnings. The exchange brand you recognise may not match the receiving account name, which can trigger a bank warning even when details are correct.
• Confirmation of Payee is rolling out across banks from July 2025. It checks the name you enter against the destination account details and can add friction when the payee naming is inconsistent.
• Card deposits can be declined by issuers. Some banks block exchange card transactions, especially for first time purchases or sudden increases in size.
• Large transfers can trigger manual review. RTGS can be used for larger amounts, but it depends on bank cutoffs and is not instant.

What to do before you fund an exchange from an Australian bank

This checklist reduces failed deposits and "where is my money" tickets.

• Start with a small test deposit first using Osko/NPP, then scale up.
• If you use a bank transfer, only copy deposit details from inside the exchange deposit screen, then send during bank business hours.
• Match names. Fund from a bank account in the same legal name as your exchange profile.
• Copy the reference exactly if one is provided. Missing references are a common cause of delayed crediting.
• If your bank blocks the payment, try a higher scoring bank account first: Up Bank, ING Australia, Commonwealth Bank, Westpac, ANZ, NAB.

Tax and record keeping in Australia

For most Australians, crypto is treated as a CGT asset. Selling, swapping, or spending crypto can trigger a CGT event. You are expected to keep records that support your cost base, proceeds, and fees, including when you move assets between platforms or self custody.

• Record each acquisition and disposal, including crypto to crypto swaps.
• Keep AUD values, timestamps, fees, and wallet details where relevant.
• Exchange exports help, but keep your own backups.

Quick safety checks that save time

These checks do not guarantee safety, but they cut avoidable mistakes.

• Check whether the platform is AUSTRAC registered, and check the legal entity name, not just the brand.
• Prefer platforms with clear AUD funding instructions and established rails: Kraken, CoinSpot, Binance.
• Keep transfer receipts and screenshots of deposit instructions. Support will ask for them when a deposit is delayed.