AUSTRALIA Trends and Developments Contributed by: Steven Pettigrove, Katrina Sharman, Luke Higgins and William Deeb, Piper Alderman
Introduction Australia has entered a pivotal phase in the regulation of digital assets, with 2026 marking the transition from fragmented, interpretative oversight to a structured and activity-based regime for digital asset businesses. Longstanding reliance on case-by-case characterisa- tion under the Corporations Act 2001 (Cth) (Corpora- tions Act) is being complemented by legislative reform that targets digital asset intermediation, custody and financial crime risk. Two developments define this shift. First, amend- ments to the Anti-Money Laundering and Counter-Ter- rorism Financing Act 2006 (Cth) (AML/CTF Act), which commenced on 31 March 2026, introduce a Financial Action Task Force (FATF)-aligned virtual asset service provider (VASP) regime. Secondly, the Corporations Amendment (Digital Assets Framework) Bill 2025 (Cth) (DAF Act), which received royal assent in April 2026 and commences from 8 April 2027, embeds digital asset-specific licensing concepts within the Australian financial services licensing (AFSL) framework. These reforms sit alongside broader regulatory activ- ity, including ASIC enforcement, targeted stablecoin relief and the High Court of Australia’s judicial con- sideration of crypto-assets, as well as proposed pay- ments reforms. Together, they reflect a policy direction that integrates digital asset activities into the existing financial services architecture, while retaining targeted exemptions for decentralised infrastructure and ancil- lary use cases. The Current Regulatory Environment The following laws may apply to blockchain and cryp- to-assets: • the Corporations Act, including a requirement to hold an Australian Financial Services Licence (AFSL) where a crypto-asset is a financial product; • the AML/CTF Act; • the National Consumer Credit Protection Act 2009 (Cth); • the Australian Securities and Investments Commis- sion Act 2001 (Cth); • the Payment Systems (Regulation) Act 1998 (Cth) (the “PSRA”); and • the Australian Consumer Law.
Current AFSL regime Whether a digital asset or crypto-related service is regulated under Australian financial services law turns on an assessment of its legal characteristics. This requires a case-by-case assessment of whether a digital asset falls within an existing financial product category under Chapter 7 of the Corporations Act. In practice, this involves analysing whether a token or arrangement constitutes a managed investment scheme, a security, a derivative, a non-cash payment facility or a facility for making a financial investment (each of which is a separate financial product or ser- vice). This assessment is inherently fact-specific. Given the breadth of the relevant statutory definitions, there is considerable uncertainty as to whether a digital asset issued or offered in Australia or to Australians, will be characterised by ASIC as a financial product. Regu- latory outcomes are therefore often driven by the design, functionality and marketing of an asset, rather than its label or underlying technology. Issuers, exchanges and intermediaries are required to assess each token and product design individually. Activities such as issuing, dealing, advising or provid- ing custodial services in relation to a financial product trigger the requirement to hold an AFSL, with signifi- cant civil and criminal penalties for non–compliance. Current Taxation Regime Australia’s taxation framework does not specifically address blockchain or digital assets. Instead, general tax laws apply to cryptocurrency transactions, includ- ing: • the Income Tax Assessment Act 1997 (Cth) and the Income Tax Assessment Act 1936 (Cth); • a New Tax System (Goods and Services Tax) Act 1999 (Cth); • the Fringe Benefits Tax Assessment Act 1986 (Cth); and • State-based payroll tax, stamp duty and land tax regimes.
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