AUSTRALIA Law and Practice Contributed by: Steven Pettigrove, Katrina Sharman, Luke Higgins and William Deeb, Piper Alderman
• the applicability of indirect taxes (eg, Goods and Services Tax (GST)) in the context of decentralised and anonymous transactions; • what crypto-asset dealings may or may not consti- tute a Capital Gains Tax (CGT) disposal or event; • the application of potential CGT exemptions, including the personal use asset exemption; • the calculation of CGT asset cost bases; • the taxation implications of crypto-asset exchange failures and creditor claims denominated in crypto- assets; and • what constitutes sufficient records in the eyes of the Australian Taxation Office (ATO) (eg, decentral- ised ledger records). Additionally, there remains some controversy in Aus- tralia over whether an interest in bitcoin (and pos- sibly other cryptocurrencies) is considered property for Australian common law purposes. Most recently, the Commissioner of Taxation on 7 May 2026 filed to intervene in a civil proceeding in Australia’s highest court (the High Court of Australia), Poulton v Conrad H1/2026. The Commissioner is seeking to intervene to contend that an interest in Bitcoin is property for the purposes of Australian common law and thereby taxable by the Commissioner under Australia’s capital gains taxation regime or as an item of trading stock. 1.2.5 Insolvency There are no specific resolution or insolvency regimes tailored to blockchain-based businesses in Austral- ia. However, several businesses have been subject to conventional insolvency proceedings. For exam- ple, the Australian arm of FTX entered administra- tion in 2022 and subsequently went into liquidation, with creditors expected to be repaid in full. Another exchange, Digital Surge (which was affected by the collapse of FTX), also entered administration in late 2022, but was successfully restructured through a deed of company arrangement (DOCA), allowing it to exit administration and resume operations. 1.2.6 Industry and Trade Bodies As in 1.1.5 Industry and Trade Bodies regarding blockchain industry bodies, DECA is the primary rep- resentative organisation for participants in the cryp- to-asset sector. DECA performs an advocacy and industry coordination role, including engaging with
government and regulators on the development of Australia’s digital asset framework. It also adminis- ters the Australian Digital Currency Industry Code of Conduct, a voluntary, audited self regulatory scheme. 2. Regulation 2.1 Regulators and International Alignment The principal regulators relevant to blockchain and crypto-asset businesses in Australia are the ASIC, the Australian Transaction Reports and Analysis Centre (AUSTRAC) and the ATO, as outlined below. • ASIC regulates crypto-asset activities where a token or arrangement falls within the definition of a “financial product” or where a business provides a financial service under the Corporations Act, including enforcement against misleading and deceptive conduct. ASIC’s remit is extended by delegated authority from the Australian Competi- tion and Consumer Commission (ACCC) in relation to conduct involving misleading and deceptive conduct in the marketing or sale of crypto-assets that are not “financial products”. ASIC has adopted a more assertive supervisory posture, identifying crypto-assets as an enforcement priority following market instability, with a focus on investor protec- tion and application of existing financial services laws. • AUSTRAC regulates blockchain and crypto busi- nesses that provide “designated services” with a geographical link to Australia, focusing on AML/ CTF reporting, supervision and financial crime detection. AUSTRAC’s approach is risk-based and aligned with financial crime mitigation, requir- ing reporting entities to implement AML/CTF programmes tailored to the nature of the services provided. • The ATO regulates tax treatment, including capital gains tax, trading stock characterisation and fringe benefits tax issues and has adopted a cautious approach, favouring guidance over legislative reform, following the Board of Taxation review pub- lished in 2025. Australia has also taken steps to align its AML/CTF framework with international standards. Recent
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