As Australia’s digital asset sector matures, regulators are tightening their approach to ensure that crypto service providers meet international anti-money laundering (AML) and consumer protection standards. If you’re planning to launch a crypto business in Australia, this guide explains how to get registered and how to prepare for future licensing requirements.

Step 1: Determine if You Need to Register

Under current Australian law, if your business exchanges fiat currency for crypto (or vice versa), you are considered a Digital Currency Exchange (DCE) and must register with AUSTRAC—the Australian financial intelligence unit and AML regulator.

This includes:

• Crypto exchange platforms
• OTC desks
• Crypto ATM operators
  
  

You must register before commencing operations.

Step 2: Enrol with AUSTRAC

Visit the AUSTRAC Business Portal to:

• Create an account
• Submit an enrolment form
• Obtain your AUSTRAC reference number
  
  

Enrolment formally identifies your business as a reporting entity under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act).

Step 3: Register as a Digital Currency Exchange

Following enrolment, apply for registration on the Digital Currency Exchange Register (DCER). The application requires:

• Details of your corporate structure
• Background checks on key personnel
• Descriptions of your services (e.g., fiat exchange, custody)
• An AML/CTF program and risk assessment documentation
  
  

Operating without registration is a criminal offense.

Step 4: Implement an AML/CTF Program

All DCEs must implement a tailored AML/CTF program that includes:

• Customer due diligence (KYC)
• Ongoing transaction monitoring
• Reporting of threshold transactions (AUD 10,000 or more)
• Reporting of suspicious matters
• Employee training
• Record-keeping for at least five years
  
  

This program should reflect your specific business model and risk profile.

Step 5: Satisfy Fit and Proper Person Requirements

AUSTRAC assesses whether your controllers, owners, and responsible persons are suitable. Applications may be refused or revoked if any individual is found to pose a money laundering, terrorism financing, or serious crime risk.

Criteria include:

• Criminal history
• Links to organised crime
• Past regulatory non-compliance
  
  

Anticipating the New Licensing Framework

The current AUSTRAC registration system will soon be replaced by a broader licensing regime proposed by Treasury. The new regime will align with global FATF standards and require licensing for a wider range of crypto-related activities, including:

• Crypto-to-crypto exchange
• Transfers and custody of crypto assets
• Token issuance and related financial services
  
  

The new framework is expected to introduce:

• Licensing obligations
• Capital adequacy standards
• Fit and proper person tests
• Consumer protection and custody requirements
  
  

Businesses are advised to design their compliance systems with these future requirements in mind.

Foreign Companies and Non-Residents

Foreign businesses offering crypto services to Australian customers can register with AUSTRAC. This typically requires:

• A local compliance contact or agent
• Translated corporate documents
• A compliance officer familiar with Australian AML/CTF requirements

While AUSTRAC registration is currently the main requirement, the regulatory landscape is changing. By registering now and preparing for upcoming licensing obligations, crypto businesses can ensure compliance, improve credibility, and secure access to financial services. Early alignment with international standards will be critical to long-term success in the Australian crypto market.