Licentium

Australia

Australia is integrating crypto, payments and gambling into its existing financial-services law rather than building standalone regimes. Crypto faces two parallel 2026 reforms: a FATF-aligned VASP regime under the amended AML/CTF Act (AUSTRAC, from 31 March 2026), and the Corporations Amendment (Digital Assets Framework) Act 2026 (commencing 8 April 2027) making Digital Asset Platforms and Tokenised Custody Platforms AFSL-licensed under ASIC, with stablecoins on the payments track. Payments are being modernised under the Payments System Modernisation Act 2025 and a new PSP licensing framework (SVFs, tokenised stablecoins, payment instruments and services; APRA prudential oversight of major SVFs above AUD 200m), while gambling is state/territory-licensed within the federal Interactive Gambling Act 2001 (online casino/poker/in-play banned; ACMA blocks illegal sites; BetStop national self-exclusion).

Available licences

Crypto: AUSTRAC VASP / Digital Currency Exchange Registration (AML/CTF Act)

Businesses providing designated virtual-asset services with an Australian link must register with AUSTRAC and run an AML/CTF programme (CDD, transaction monitoring, reporting). The FATF-aligned VASP regime commenced 31 March 2026, building on the digital-currency-exchange registration that has applied since 2018.

Crypto: AFSL for Crypto that is a Financial Product (ASIC; Corporations Act)

Where a crypto asset or arrangement is a financial product (e.g. fiat-backed stablecoins as non-cash payment facilities, algorithmic stablecoins as derivatives, or tokens that are securities or managed-investment interests), dealing, advising and platform operation require an AFSL and may require a market licence. ASIC's INFO 225 sets out the analysis, with 18 worked examples.

Crypto: Digital Asset Platform (DAP) AFSL (Digital Assets Framework Act; from 8 April 2027)

Exchanges and platforms that hold crypto on behalf of customers become a new financial product requiring an AFSL, with tailored asset-holding, custody and disclosure standards. DAP issuance is exempt only if no financial products are held under the issuer group’s DAPs, transactions through them over the last 12 months total no more than AUD 10 million, each customer’s assets in them total no more than AUD 5,000, and the issuer has lodged the prescribed notice with ASIC.

Crypto: Tokenised Custody Platform (TCP) AFSL (Digital Assets Framework Act; from 8 April 2027)

Platforms that tokenise real-world assets become a separate financial product requiring an AFSL, again with tailored custody and disclosure obligations.

Payments: AFSL for Non-Cash Payment Facility (current) / PSP Licensing (reform)

Today, payment products are non-cash payment facilities requiring an AFSL. Under the Payments System Modernisation reform, this is replaced by new financial products and services: stored-value facilities, tokenised SVFs (currency stablecoins), payment instruments, and payment services (initiation, facilitation, technology/enablement), each requiring an AFSL with payments-specific modifications.

Payments: Major Stored-Value Facility Registration (APRA)

Under the reform, a provider whose stored value exceeds AUD 200 million (group basis) must register with APRA and meet prudential standards (safeguarding, resilience), without becoming an authorised deposit-taking institution.

Payments: Remittance / Money-Transfer Registration (AUSTRAC)

Remittance-network and independent remittance dealers must register with AUSTRAC and meet AML/CTF obligations.

Banking: Authorised Deposit-taking Institution (APRA; Banking Act 1959)

Taking deposits and conducting banking business requires APRA authorisation as an ADI (including restricted ADIs for new entrants), with full capital, governance and prudential requirements.

Gambling: State/Territory Wagering Licence

Online and retail wagering (pre-match sports betting and racing) requires a licence from a state/territory regulator; many national online operators are licensed by the Northern Territory Wagering Commission, subject to the federal Interactive Gambling Act and state point-of-consumption taxes.

Gambling: State/Territory Casino, Gaming-Machine and Lottery Licences

Casinos, gaming machines (pokies), keno and lotteries are licensed and taxed by each state/territory regulator, with strict probity, AML and responsible-gambling controls.

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Detailed overview

Australia at a glance

Australia is folding crypto, payments and gambling into existing financial-services and consumer law. Crypto faces two 2026 reforms: a FATF-aligned VASP regime (AUSTRAC, from 31 March 2026) and the Digital Assets Framework Act 2026 (Royal Assent April 2026, commencing 8 April 2027) making DAPs and TCPs AFSL-licensed under ASIC. Stablecoins are on the separate payments track. Payments are being modernised: the Payments System Modernisation Act 2025 plus a new PSP licensing framework replacing non-cash payment facilities with SVFs, tokenised SVFs, payment instruments and payment services (AFSL via ASIC; APRA over major SVFs above AUD 200m). Gambling is state/territory-licensed within the federal Interactive Gambling Act 2001, which bans online casino, poker and in-play betting; ACMA blocks illegal sites and BetStop provides national self-exclusion.

Crypto regime, integrated into financial-services and AML law; two 2026 reforms:

  • AML/CTF Act 2006 (AUSTRAC): digital-currency-exchange registration since 2018; a FATF-aligned VASP regime commenced 31 March 2026, with AML/CTF programmes, CDD, monitoring and reporting; AUSTRAC ran a 2025 "use it or lose it" campaign cancelling inactive DCE registrations
  • Corporations Amendment (Digital Assets Framework) Act 2026: Royal Assent 8 April 2026; commences 8 April 2027 (six-month transition); creates Digital Asset Platforms and Tokenised Custody Platforms as financial products requiring an AFSL, with tailored asset-holding, custody and disclosure standards; DAP issuance is exempt only if no financial products are held under the issuer group’s DAPs, transactions through them over the last 12 months total no more than AUD 10 million, each customer’s assets in them total no more than AUD 5,000, and the issuer has lodged the prescribed notice with ASIC
  • ASIC (Corporations Act; INFO 225): crypto that is a financial product already requires an AFSL; ASIC takes a functional view (fiat-backed stablecoins as non-cash payment facilities; algorithmic stablecoins as derivatives; tokens that are securities or managed-investment interests); enforcement-led posture (Block Earner, Finder, Qoin, BPS Financial); transitional relief for certain stablecoins and wrapped tokens (ASIC Corporations Instrument 2025/867) and a good-faith no-action position that ended on 30 June 2026
  • Stablecoins: handled primarily on the payments/SVF track as "tokenised SVFs," not the Digital Assets Framework Act
  • Tax (ATO): crypto assets treated as property subject to capital gains tax; trading-stock and income treatment where relevant
  • Banking access: de-banking has been a persistent issue; the new AFSL status is intended to give crypto platforms clearer footing with banks

Payments and e-money regime (modernising into the AFSL framework):

  • Current: payment products are non-cash payment facilities (financial products) requiring an AFSL (ASIC); purchased payment facilities sit with APRA/RBA; AUSTRAC registers remitters
  • Payments System Modernisation Act 2025 (Royal Assent 19 September 2025): expands RBA and Treasury powers to designate and oversee payment systems, including a Treasurer "national interest" designation power
  • PSP licensing reform (Tranche 1 exposure draft; consultation to 9 April 2026): replaces non-cash payment facilities with new financial products (SVFs, tokenised SVFs, payment instruments) and a new financial service, payment services (initiation, facilitation, technology/enablement); AFSL required for PSPs performing a payment function; a mandatory ePayments Code; expected commencement around 12 months after Royal Assent (likely 2027)
  • Major SVFs: providers above AUD 200 million stored value (group basis) must register with APRA and meet prudential and safeguarding standards (not as ADIs); low-value SVFs exempt (under AUD 10 million and AUD 1,000 per person)
  • Stablecoins: a single-currency stablecoin is a tokenised SVF (the regulated financial product), with monthly reserve reporting; the token itself is not separately regulated
  • Infrastructure: the New Payments Platform (NPP), PayTo, Osko, BPAY and PayID; RBA retail-payments and surcharging policy
  • Currency: Australian dollar (AUD), free-floating; the RBA does not target a level

Gambling regime, state/territory-licensed within a federal online perimeter:

  • Interactive Gambling Act 2001 (IGA; federal): prohibits "prohibited interactive gambling services" to Australians: online casino, online poker, online slots and online in-play (live) sports betting; permits online/phone wagering (pre-match sports betting and racing) and online lotteries/keno via licensed operators; strengthened by the Interactive Gambling Amendment Act 2017
  • ACMA: enforces the IGA, blocks illegal offshore sites, and refers directors of offending operators to the Australian Border Force
  • State/territory licensing: each state/territory licenses casinos, gaming machines, wagering and lotteries; many national online wagering operators are licensed by the Northern Territory and serve nationally
  • Point-of-consumption tax (POCT): state-based wagering taxes (broadly 10%–15% of net wagering revenue, varying by state)
  • National Consumer Protection Framework: BetStop national self-exclusion register (from August 2023), activity statements, deposit limits, a ban on lines of credit and customer-verification rules
  • Advertising reform: the 2023 parliamentary review recommended phasing out online gambling advertising; comprehensive reform has been long-debated but not yet legislated
  • Minimum age 18; casino sector subject to intensive probity scrutiny in recent years

Last verified: May 2026. Reference rate: USD 1 = AUD 1.52 (AUD 1 ≈ USD 0.66). The Australian dollar floats freely; the RBA does not target a level and intervenes only rarely.

Australia is consolidating digital finance into its existing AFSL architecture: AUSTRAC's VASP regime (from March 2026) and the Digital Assets Framework Act (DAPs/TCPs, from April 2027) for crypto, the Payments System Modernisation reform (SVFs, tokenised stablecoins, payment services) for payments, and a state/territory gambling system bounded by the federal Interactive Gambling Act (wagering and lotteries permitted, online casino and in-play betting prohibited and blocked).

Is there a crypto licence in Australia?

It is arriving in stages. AUSTRAC registration (now a FATF-aligned VASP regime from 31 March 2026) applies to virtual-asset services today; crypto that is a financial product already needs an AFSL under ASIC's existing law (INFO 225); and from 8 April 2027 Digital Asset Platforms and Tokenised Custody Platforms become AFSL-licensed financial products in their own right. Stablecoins are regulated on the payments track.

The legal foundation:

  • AML/CTF Act 2006: AUSTRAC VASP/DCE registration and programmes (FATF-aligned regime from 31 March 2026)
  • Corporations Act + Digital Assets Framework Act 2026: DAPs and TCPs as financial products requiring an AFSL (commences 8 April 2027; limited DAP issuance exemption)
  • ASIC INFO 225: functional financial-product analysis for crypto today (stablecoins, derivatives, securities, MIS interests)
  • Payments reform: single-currency stablecoins regulated as tokenised SVFs
  • Tax (ATO): property/CGT treatment

Structure:

  • An Australian entity with an AFSL (for financial-product crypto now, and for DAPs/TCPs from 2027) plus AUSTRAC registration; asset-holding, custody and disclosure standards for platforms; competence, capital and dispute-resolution obligations
  • Dual compliance is common: AFSL (ASIC) and AML/CTF (AUSTRAC) apply independently
  • Transitional relief eases the gap while the DAP/TCP regime is stood up; the good-faith no-action stance ended on 30 June 2026

Operational reality:

  • Australia is deliberately applying TradFi-grade standards (custody, safeguarding, disclosure) to crypto: the design is "same activity, same risk, same regulation"
  • Sequencing matters: register with AUSTRAC now, classify each token/product under INFO 225, and build toward DAP/TCP AFSL authorisation for the 2027 commencement
  • Independent Australian legal, regulatory and tax counsel and early engagement with ASIC's and AUSTRAC's innovation hubs are advisable; licences do not passport into the EU (a MiCA CASP authorisation is separate)

Payments & E-money (ASIC AFSL; APRA for major SVFs; modernising in 2025–2027)

Best for payment, wallet, prepaid, BNPL, acquiring and stablecoin-payment operators prepared to hold an AFSL and, at scale, register with APRA, and to migrate from the non-cash-payment-facility regime into the new PSP framework.

What it is: Today, payment products are non-cash payment facilities requiring an AFSL (ASIC). Under the Payments System Modernisation reform, this becomes a tiered PSP regime: stored-value facilities, tokenised SVFs (currency stablecoins), payment instruments and payment services. The new regime comes with AFSL via ASIC, APRA prudential oversight of major SVFs, and expanded RBA/Treasury designation powers.

Who it suits: Digital wallets, prepaid and stored-value issuers, acquirers, payment gateways, BNPL providers, remitters, and stablecoin-payment operators, plus banks/ADIs.

Covers: Stored value (e-money), currency stablecoin issuance (as tokenised SVFs), payment instruments (cards, PayTo, BPAY), and payment services (initiation, facilitation, technology/enablement); remittance via AUSTRAC.

Operational requirement: An Australian entity; an AFSL with the appropriate authorisations; safeguarding of customer/payment money; AML/CTF (AUSTRAC) for remittance and tokenised SVFs; APRA registration and prudential standards if a major SVF (above AUD 200m); compliance with the mandatory ePayments Code; access to NPP/PayTo rails.

Headline figures

  • Primary instruments: Corporations Act 2001 (AFSL); Payments System Modernisation Act 2025; PSP licensing reform (SVFs, tokenised SVFs, payment instruments, payment services); Banking Act 1959; AML/CTF Act 2006; Payment Systems (Regulation) Act 1998
  • Regulators: ASIC (AFSL/conduct); APRA (ADIs, major SVFs); RBA (payment-systems oversight); AUSTRAC (AML/remittance)
  • Entry thresholds: AFSL (capital/competence per authorisation); major-SVF APRA registration above AUD 200m; low-value SVF exemption (under AUD 10m and AUD 1,000 per person)
  • Stablecoins: regulated as tokenised SVFs (monthly reserve reporting); the token itself is not a separate financial product
  • Infrastructure: NPP, PayTo, Osko, BPAY, PayID
  • Currency: AUD, free-floating; no exchange controls

Is there a gambling licence in Australia?

Yes, but split between federal prohibitions and state/territory licensing. The federal Interactive Gambling Act 2001 bans online casino, poker, slots and in-play sports betting to Australians, while permitting online/phone wagering (pre-match sports and racing) and online lotteries via state/territory-licensed operators. ACMA blocks illegal offshore sites and BetStop provides national self-exclusion.

The legal foundation:

  • Interactive Gambling Act 2001 (federal): prohibits online casino, poker, slots and in-play betting; permits online wagering and lotteries via licensed operators
  • State/territory gambling statutes: license casinos, gaming machines, wagering and lotteries; online wagering is commonly licensed in the Northern Territory
  • National Consumer Protection Framework: BetStop self-exclusion, deposit limits, no lines of credit, activity statements
  • Tax: state point-of-consumption taxes (broadly 10%–15% of net wagering revenue), plus state gaming and casino taxes

Structure:

  • Online wagering: licensed by a state/territory regulator (often the NT Wagering Commission); national reach; POCT and race-field fees apply
  • Casinos/pokies/lotteries: state/territory-licensed and taxed; strict probity and AML controls
  • Prohibited online: online casino, poker, slots and in-play betting cannot be offered to Australians (ACMA enforcement and site-blocking)
  • Minimum age 18; comprehensive responsible-gambling obligations

Gambling: State/Territory Wagering, Casino, Gaming-Machine and Lottery Licences (within the IGA)

Best for licensed wagering and lottery operators and land-based casino/gaming operators able to meet state/territory probity and the federal online perimeter; not for online casino, poker or in-play operators.

What it is: A state/territory licence for wagering, casino, gaming-machine or lottery operations, exercised within the federal Interactive Gambling Act's online prohibitions and the National Consumer Protection Framework.

Who it suits: Online and retail wagering operators (commonly NT-licensed), lottery operators, and land-based casino/gaming operators; not online casino/poker/in-play operators.

Covers: Online and retail wagering (pre-match sports and racing), online lotteries/keno, land-based casino games, gaming machines and lotteries; not prohibited online services.

Operational requirement: A state/territory licence with probity and suitability vetting; compliance with the IGA, the National Consumer Protection Framework (BetStop, deposit limits, no credit), and AML/CTF; POCT, race-field and product fees; responsible-gambling and advertising-code compliance.

Headline figures

  • Primary instruments: Interactive Gambling Act 2001 (and 2017 amendments); state/territory gambling statutes; National Consumer Protection Framework
  • Regulators: ACMA (federal IGA enforcement/blocking); state/territory regulators (licensing); NT Wagering Commission (much online wagering)
  • Costs: state/territory licence fees; main ongoing cost is POCT (broadly 10%–15% of net wagering revenue) plus race-field/product fees
  • Prohibitions: online casino, poker, slots and in-play betting banned to Australians; offshore sites blocked
  • Player protection: BetStop national self-exclusion; deposit limits; no lines of credit; min age 18
  • Reform watch: long-debated online-gambling advertising reform not yet legislated

Costs and timelines at a glance

  • Crypto: AUSTRAC VASP registration (FATF-aligned, from 31 Mar 2026); AFSL for financial-product crypto now (INFO 225); Digital Assets Framework Act 2026, DAP/TCP AFSL financial products (Royal Assent Apr 2026; commences 8 Apr 2027; DAP issuance exemption subject to group limits of AUD 10m a year in transactions and AUD 5,000 per customer, no financial products held and an ASIC notice lodged); stablecoins on the payments track; ATO property/CGT
  • Payments primary instruments: Corporations Act (AFSL); Payments System Modernisation Act 2025; PSP licensing reform (SVFs, tokenised SVFs, payment instruments, payment services); Banking Act 1959; AML/CTF Act 2006
  • Payments regulators: ASIC (AFSL); APRA (ADIs, major SVFs > AUD 200m); RBA (systems oversight); AUSTRAC (remittance/AML)
  • Reform pipeline: PSP licensing framework (commencement ~12 months after Royal Assent, likely 2027); mandatory ePayments Code; DAP/TCP commencement (Apr 2027)
  • Gambling: Interactive Gambling Act 2001 (online casino/poker/in-play banned; wagering and lotteries permitted); state/territory licensing (often NT for online wagering); POCT ~10–15%; BetStop; ACMA blocking; min age 18; advertising reform pending
  • Currency: AUD, free-floating; no exchange controls
  • FX: USD 1 = AUD 1.52 (AUD 1 ≈ USD 0.66)

Who Australia suits and who it does not

Suitable for

  • Crypto exchanges, custodians and tokenisation platforms prepared to register with AUSTRAC now and build toward DAP/TCP AFSL authorisation for the April 2027 commencement, with TradFi-grade custody, safeguarding and disclosure
  • Stablecoin issuers comfortable being regulated as tokenised-SVF providers under the payments reform, with reserve reporting and (at scale) APRA prudential oversight
  • Payment, wallet, prepaid, BNPL, acquiring and remittance operators able to hold an AFSL and migrate into the new PSP framework, integrating with NPP/PayTo
  • Licensed wagering and lottery operators and land-based casino/gaming operators able to meet state/territory probity and the federal IGA perimeter, and absorb POCT and the National Consumer Protection Framework
  • Groups that value a stable, common-law, AAA-rated market with a clear policy direction toward integrating digital finance into existing financial-services law

Not suitable for

  • Firms wanting a settled, light-touch crypto licence today: the DAP/TCP regime does not commence until April 2027, and the interim relies on INFO 225, transitional relief and AUSTRAC registration
  • Crypto businesses needing EU passporting: Australian authorisations do not passport (a MiCA CASP authorisation is separate)
  • Payment or e-money firms expecting an EU-style EMI/passport: Australia uses the AFSL framework (and APRA for major SVFs), with reform still being finalised
  • Online casino, poker, slots or in-play betting operators targeting Australians: these are prohibited under the Interactive Gambling Act and actively blocked by ACMA
  • Operators sensitive to evolving reforms (PSP licensing, DAP/TCP commencement, gambling advertising), de-banking risk, or state-by-state gambling tax and probity requirements

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