Is Crypto Legal in Australia? What Investors Should Know in 2025
⚖️ Disclaimer
This article is for general informational purposes only and does not constitute legal or financial advice. Please consult a registered tax agent or financial advisor before making crypto-related decisions.
If you’re considering buying Bitcoin, Ethereum, or NFTs in Australia, one of the first questions you may ask is:
“Is crypto even legal here?”
The answer is yes — cryptocurrency is legal in Australia, but it’s also regulated.
This 2025 guide breaks down what you can and can’t do, how the Australian government and ATO treat crypto, and what every investor and trader should know before getting started.
✅ Is Cryptocurrency Legal in Australia?
Yes. Cryptocurrency is legal to buy, sell, hold, and trade in Australia.
There are no restrictions on Australians owning or using digital assets like Bitcoin or Ethereum.
Crypto is recognised as:
- Property for tax purposes (not legal tender)
- A Capital Gains Tax (CGT) asset, like shares or real estate
- A digital commodity, not backed by the government
The Australian government does not issue or control cryptocurrency, but it does regulate how it’s used.
🛡️ Who Regulates Crypto in Australia?
| Regulator | What They Do |
|---|---|
| AUSTRAC | Anti-money laundering (AML) & counter-terrorism financing (CTF) |
| ASIC | Enforces financial services laws, warns on scams |
| ATO | Applies and collects tax on crypto transactions |
| RBA (indirectly) | Monitors broader implications of digital assets |
✅ All crypto exchanges operating in Australia must register with AUSTRAC and follow KYC/AML guidelines.
💱 Is It Legal to Buy and Sell Crypto?
Yes. Australians can legally:
- Open accounts with AUSTRAC-registered exchanges like CoinSpot, Swyftx, Binance AU
- Buy and sell crypto with AUD via PayID, bank transfer, etc.
- Use crypto as payment (though few businesses accept it)
🔒 Just ensure you use registered exchanges and always store funds securely (ideally in your own wallet).
💼 Do I Need to Pay Tax on Crypto?
Yes — the Australian Tax Office (ATO) considers cryptocurrency a CGT asset.
Here’s how it works:
| Action | Tax Implication |
|---|---|
| Buying and holding crypto | ❌ No tax until sold |
| Selling/trading crypto | ✅ Capital Gains Tax (CGT) applies |
| Earning crypto (e.g. staking) | ✅ Income tax may apply |
| Receiving crypto as payment | ✅ Treated as business income |
📚 Related: NFT Tax in Australia: What You Need to Know
🧠 Tip: Keep accurate records — prices at time of purchase, sale, transfers, and any staking rewards.
👮 Is It Legal to Use Crypto Anonymously?
Not really. All major exchanges in Australia require identity verification (KYC).
While self-custodial wallets don’t require ID, using unregistered or anonymous exchanges may trigger red flags with the ATO or AUSTRAC.
🔐 Privacy coins like Monero are legal to own but may attract scrutiny.
🚫 What’s Illegal?
Crypto is legal — but not all activities are.
Here’s what to avoid in Australia:
- ❌ Buying from unregulated or overseas scam platforms
- ❌ Promoting unlicensed crypto financial products
- ❌ Not reporting profits or crypto income to the ATO
- ❌ Participating in rug pulls or pump-and-dump schemes
⚠️ ASIC frequently issues warnings about dodgy crypto projects. Stay informed.
🇦🇺 Is Crypto Considered Legal Tender?
No. The Australian dollar (AUD) is still the only legal tender.
However, you can use crypto as a method of payment if both parties agree, like:
- Paying for a service in Bitcoin
- Accepting ETH as a freelancer
- Transferring USDT for private transactions
Just remember: all of these are still taxable events under ATO guidelines.
🧠 FAQs: Crypto Legality in Australia
Q: Can I legally buy Bitcoin in Australia in 2025?
A: Yes. Australians can legally buy Bitcoin through AUSTRAC-registered exchanges.
Q: Do I have to declare my crypto to the ATO?
A: Yes. Capital gains and crypto-related income must be reported on your tax return.
Q: Are NFTs legal in Australia?
A: Yes. NFTs are legal to create, sell, and own — and are also considered CGT assets.
Q: Can I use crypto for payments?
A: Yes, but it's not legal tender. You can only use it if both parties voluntarily agree.
✅ Final Thoughts: Yes, It’s Legal — But Regulated
In 2025, Australia is one of the most crypto-progressive countries in the world.
You can trade, invest, and build in the crypto space legally — just know the rules.
Here’s how to stay compliant:
- ✅ Use regulated exchanges
- ✅ Keep clear transaction records
- ✅ Understand CGT and income rules
- ✅ Stay alert to scams and project risks
- ✅ Get advice from a tax or legal professional if needed
