AUSTRAC Registration Eligibility Checker
Is Your Business Required to Register with AUSTRAC?
Use this tool to determine if your crypto business needs AUSTRAC registration in Australia. Based on October 2025 regulations and upcoming changes effective March 31, 2026.
If you're running a crypto exchange in Australia, you must register with AUSTRAC-or you're breaking the law. It's not optional. It's not a suggestion. As of October 2025, any business that exchanges fiat money for cryptocurrency, or crypto for fiat, has to be registered with AUSTRAC before taking a single customer dollar. No exceptions. No grace periods. And if you think you can slip under the radar because you're small or operate online only, you're wrong. AUSTRAC tracks everything-from crypto ATMs to decentralized platforms that handle fiat on-ramps.
Who Exactly Needs to Register?
Not every crypto business needs AUSTRAC registration. Only those that move money between Australian dollars (or other fiat currencies) and digital currencies like Bitcoin, Ethereum, or stablecoins. That means:- Exchanges that let you buy BTC with AUD
- Platforms that let you cash out ETH to your bank account
- Crypto ATMs located in Australian malls or convenience stores
- Over-the-counter (OTC) desks that trade crypto for cash
If you're just trading Bitcoin for Ethereum on your platform? You're currently not required to register. But that changes on March 31, 2026. After that date, even crypto-to-crypto trading platforms will need AUSTRAC registration. So if you're planning to expand your service to include token swaps, you need to plan now-not after the deadline hits.
What You Need Before You Apply
You can't just fill out a form and click submit. AUSTRAC requires two core documents before they'll even look at your application:- AML/CTF Program - This isn't a one-page checklist. It's a full operational blueprint showing how you detect, prevent, and report money laundering and terrorism financing. It must cover customer onboarding, transaction monitoring, staff training, and internal audits.
- Money Laundering and Terrorism Financing (ML/TF) Risk Assessment - You have to prove you understand your risks. Are you dealing with high-risk customers? Do you serve users from sanctioned countries? Do you accept anonymous payments? Your assessment must identify these risks and explain how you're mitigating them.
Many businesses get rejected because they submit incomplete or generic documents. AUSTRAC doesn't accept templates copied from other industries. Your program must reflect your actual business model. If you're a crypto ATM operator, your risk profile is different from a high-volume online exchange. Tailor it. Document it. Prove it.
The Registration Process
The application is done online through AUSTRACâs portal. But hereâs what most people donât tell you: the system doesnât just accept your form. It checks your documents. If your AML/CTF Program looks like it was written by someone who read a blog post, AUSTRAC will ask for revisions. And if you donât respond within 28 days, your application gets closed. No warning. No second chance.Youâll also need to provide:
- Company structure details (directors, shareholders, beneficial owners)
- Proof of identity for key personnel
- Details of all technology systems used for transactions
- Third-party service provider agreements (if you use outsourced KYC or transaction monitoring tools)
Thereâs no fee to apply, but the cost of getting it wrong is steep. Fines can reach millions of dollars. Individuals can face jail time. And your companyâs reputation? Gone. AUSTRAC publishes enforcement actions publicly. If youâre on their list, banks wonât touch you. Payment processors will drop you. Customers will walk away.
What Happens After You Register?
Registration isnât the finish line. Itâs the starting line. Once youâre approved, youâre locked into ongoing obligations:- Know Your Customer (KYC) - You must verify every customerâs identity. That means government-issued ID, proof of address, and in many cases, facial recognition or liveness checks. No exceptions for small deposits.
- Transaction Monitoring - Your system must flag unusual activity. A customer suddenly sending $50,000 in Bitcoin to an unknown wallet? Thatâs a Suspicious Matter Report (SMR). You have to file it within 24 hours.
- Reporting Large Transactions - Any cash transaction over $10,000 AUD (or equivalent in crypto) must be reported within 3 business days.
- Record Keeping - You must keep customer records, transaction logs, and compliance documents for at least seven years. Audits happen. You wonât get a heads-up.
- Annual Compliance Report - Every year, you submit a formal report to AUSTRAC proving youâre still following your own program.
These arenât suggestions. Theyâre legal requirements. And AUSTRAC uses automated tools to cross-check your reports against blockchain data. If your records donât match whatâs on-chain, theyâll come knocking.
AUSTRAC vs ASIC: Whatâs the Difference?
A lot of people confuse AUSTRAC with ASIC. Theyâre not the same. AUSTRAC handles anti-money laundering. ASIC handles financial products.If your crypto asset is just Bitcoin or Ethereum-used as a currency-you only need AUSTRAC registration. But if youâre issuing tokens that act like shares, bonds, or derivatives (like tokenized stocks or revenue-sharing coins), then you also need an Australian Financial Services License (AFSL) from ASIC. Thatâs a whole other level of regulation-capital requirements, disclosure documents, investor protection rules.
As of June 2025, most exchanges donât need an AFSL. But thatâs changing fast. The governmentâs "token mapping exercise" from 2023 is now influencing enforcement. If your token looks like a security, ASIC will treat it like one-even if you didnât intend it to be.
Whatâs Changing in March 2026?
This is the biggest shift in Australiaâs crypto regulation since 2017. Starting March 31, 2026, AUSTRACâs scope expands to include:- Exchanging one cryptocurrency for another (BTC for ETH)
- Transferring digital assets on behalf of customers
- Custody or management of digital assets (like cold storage services)
- Providing services tied to ICOs, token sales, or staking rewards
That means even if youâre just a wallet provider that lets users send crypto between addresses, youâll need to register. Same for staking platforms. Same for DeFi protocols that interact with Australian users. The rules are catching up to the technology.
Businesses that delay preparation are setting themselves up for failure. Experts from compliance firms like Zitadelle AG and Xenia Compliance are already warning clients: donât wait until February 2026 to start. The backlog of applications will be massive. Processing times could stretch to six months.
Common Mistakes and How to Avoid Them
Hereâs what goes wrong for most new applicants:- Using a generic AML template - AUSTRAC knows the difference between a copy-paste job and a real program. Write your own based on your actual operations.
- Skipping KYC for small users - No such thing as a "small" transaction under Australian law. Every customer, no matter how little they deposit, must be verified.
- Ignoring third-party risks - If you use a KYC provider like Jumio or Onfido, youâre still responsible for their failures. Document your due diligence.
- Thinking registration = compliance - Registration is paperwork. Compliance is daily work. Train your staff. Audit your logs. Update your program.
Thereâs no shortcut. You canât outsource your legal responsibility. Even if you hire a consultant, the final accountability rests with your companyâs directors.
What Happens If You Donât Register?
The penalties are severe:- Fines up to $21 million AUD for corporations
- Fines up to $1.05 million AUD for individuals
- Up to 10 years in prison for knowingly operating without registration
- Reputational damage that kills customer trust and investor interest
- Bank account closures and payment processor bans
And itâs not theoretical. In 2024, AUSTRAC shut down three unregistered crypto exchanges operating out of Melbourne and Sydney. Their founders were publicly named. Their websites were taken down. Their assets were frozen. They didnât get a warning.
Where to Go From Here
If youâre building or running a crypto exchange in Australia:- Use AUSTRACâs online assessment tool to confirm if you need to register.
- Start drafting your AML/CTF Program and ML/TF Risk Assessment now.
- Engage a compliance expert familiar with Australian crypto law-donât rely on generic legal advice.
- Train your team on KYC procedures and suspicious activity reporting.
- Prepare for the March 2026 expansion. Donât wait.
Australia isnât trying to ban crypto. Itâs trying to bring it into the same regulated space as banks and brokers. The goal is transparency, safety, and consumer protection. If youâre serious about operating here, compliance isnât a cost-itâs your license to exist.
Do I need AUSTRAC registration if I only trade crypto-to-crypto?
As of October 2025, no-you donât need AUSTRAC registration if you only exchange one cryptocurrency for another. But that changes on March 31, 2026. After that date, all crypto-to-crypto exchanges must register. Start preparing now to avoid delays or penalties.
Can I operate a crypto ATM without registering?
No. Any crypto ATM that allows users to buy Bitcoin with cash or sell Bitcoin for cash must be registered with AUSTRAC. This applies regardless of location or volume. Failure to register is a criminal offense.
How long does AUSTRAC registration take?
The process can take 3 to 6 months if your documentation is complete and accurate. Many applications are delayed because applicants submit incomplete AML/CTF programs or risk assessments. Starting early and getting professional help reduces wait times significantly.
Do I need both AUSTRAC and ASIC licenses?
Only if your crypto assets qualify as financial products under the Corporations Act-like tokenized shares, bonds, or derivatives. For standard Bitcoin or Ethereum trading, AUSTRAC registration is all you need. But if youâre issuing or selling tokens that promise returns or ownership, youâll likely need an AFSL from ASIC too.
What happens if I register but donât follow the rules?
AUSTRAC can suspend, cancel, or refuse to renew your registration. They can also impose conditions, like requiring you to limit transaction volumes or stop serving certain customers. Repeated violations can lead to fines, criminal charges, or public naming on their enforcement list.
Can I use offshore KYC providers?
Yes, but youâre still responsible for their performance. If your offshore provider fails to verify a customer properly, AUSTRAC will hold you accountable. You must document your due diligence on the providerâs systems, data security, and compliance with Australian standards.
9 Comments
Registration isn't optional. It's survival.
Man, I love how Australia's just quietly building the most sensible crypto framework in the world. No hype, no chaos-just clear rules so you don't get locked up or fined into oblivion. đđ
Compare that to places where you're either a criminal or a saint. Here, you just... follow the steps. It's weirdly beautiful.
Iâve been running a small OTC desk for two years now. We didnât register because we thought we were âtoo small.â
Turns out, AUSTRAC doesnât care how small you are. They care if you move money. We got a letter last month. Weâre now in the middle of our AML program. Itâs a pain, but honestly? It makes me feel like weâre legit.
Stop waiting. Start drafting. Your future self will thank you.
Oh great. More bureaucracy for people trying to build something cool.
Next theyâll make you file a form before you can mine Bitcoin in your basement. âSir, your ASIC has not been certified for thermal regulation compliance.â
Theyâre not protecting consumers-theyâre protecting banks. Again.
For anyone stressing about the AML/CTF program: donât try to write it alone.
Find a compliance consultant whoâs worked with Australian crypto firms before. Not a general lawyer. Not a template from 2020.
Iâve seen too many smart founders waste six months because they thought âGoogle is enough.â Itâs not. Your program needs to breathe like your business does.
Letâs be honest: this isnât regulation. Itâs control.
AUSTRAC is using the language of âconsumer protectionâ to justify mass surveillance of financial behavior. Every transaction monitored. Every wallet traced. Every âsuspiciousâ activity reported-even if itâs just grandma sending Bitcoin to her grandkid for his birthday.
The irony? The very people who built this system to prevent crime are now creating a system where innocent people are treated as suspects by default.
And donât get me started on the âthird-party due diligenceâ requirement. Youâre legally responsible for the failures of a KYC vendor in India? Thatâs not compliance. Thatâs corporate colonialism.
Canada and Australia are quietly leading the way in crypto regulation-not by banning it, but by making it responsible.
Other countries are stuck in ideological fights: âIs crypto money? Is it property? Is it a security?â
Australia says: âIf you move fiat and crypto, youâre a financial intermediary. Here are the rules. Follow them.â
Simple. Practical. Effective.
Itâs not sexy, but itâs the future.
This is just step one.
Theyâre building the infrastructure to track every crypto transaction globally through Australian nodes. Once they have the data, theyâll share it with Five Eyes. Then the US Treasury will demand access. Then China. Then the UN.
Thereâs no such thing as âprivacyâ in crypto anymore.
Theyâve already mapped 92% of all BTC addresses that interact with Australian exchanges.
Donât believe me? Check the AUSTRAC whitepaper from Q3 2024. Page 47, footnote 12. Itâs buried, but itâs there.
Key clarification: the March 2026 expansion explicitly includes custody services and DeFi protocols with fiat on-ramps-but only if the protocol has a legal entity registered in Australia or actively markets to Australian residents.
Offshore DeFi protocols with zero Australian user acquisition? Still unregulated. But if you have a Discord server with 500 Australians and a .com.au domain? Youâre in scope.
Also: âtokenized revenue-sharing coinsâ = financial product under s.761A of the Corporations Act. Not opinion. Statute.