Cryptocurrency trading is gaining popularity worldwide, including in Australia. According to research published by Roy Morgan in April 2022, over 1 million Australians own cryptocurrencies. As traders look to acquire and manage these assets, finding the best crypto exchange in Australia becomes crucial.
However, it’s important to note that many countries impose regulations on crypto assets and exchanges due to their involvement in financial investments and potential for malicious activities. Therefore, for an exchange to operate in Australia, it must comply with the country’s crypto regulations.
Major exchanges like Binance, Coinbase, Kraken, and others have ensured compliance with these regulations. But how can one determine the best crypto exchange in Australia? Don’t worry, in this article, I’ll address all the points you should consider when searching for a great Australian crypto exchange.
The exchanges discussed in this article include:
But before we dive into that, let’s talk about cryptocurrency regulations in Australia.
Australian Cryptocurrency Regulations
Before we explore the best crypto exchanges in Australia, let’s discuss the crypto landscape in the country. Is cryptocurrency trading legal in Australia? The answer is a resounding yes. Australians can legally store, send, receive, use as a payment method, and trade a variety of crypto assets.
Australia has always been welcoming to new innovations, including those from the cryptocurrency and blockchain world. When cryptocurrencies and exchanges gained legal status in 2017, Australian regulations minimally intervened in the sector.
However, to address the potential for illegal activities facilitated by digital currencies, Australian crypto legislation introduced AML (Anti-Money Laundering) and CTF (Counter-Terrorism Financing) safeguards in 2018. As a result, digital currencies came under the purview of the Financing Act of 2006, requiring exchanges to verify client identities, monitor transactions, and report suspicious or large-sum transactions (exceeding $10,000) to AUSTRAC.
It’s worth noting that all cryptocurrency exchanges in Australia are required to register with AUSTRAC, overseen by the Australian Securities and Investments Commission (ASIC). However, there are still exchanges legally available in Australia that are not registered with AUSTRAC. I’ll explain how that is possible later.
Additionally, all cryptocurrencies in Australia are considered investment assets by the Australian Taxation Office (ATO). Therefore, they are subject to Capital Gains Tax (CGT) when used for purchasing goods or services, trading, selling, converting to AUD, or even gifting to someone else. Other processes involving crypto assets, such as staking or mining, are also taxable events.
That covers the basics of crypto regulations in Australia. Now, let’s determine what makes an exchange worthy of being called the best crypto exchange in Australia.
Best Crypto Exchange Australia: Evaluation Criteria
Before diving into the list of the best crypto exchanges in Australia, let’s discuss the criteria that make them the best.
First and foremost, since Australia has strict regulations concerning cryptocurrencies, the best exchanges must comply with these regulations. Some exchanges available in Australia may not be registered with AUSTRAC but still adhere to the necessary regulations.
Features are another important criterion to consider. Keep in mind that even exchanges with extensive features may limit their services in certain countries. To ensure access to a specific feature, make sure it is available in Australia.
Australian Dollar (AUD) support is also crucial. Exchanges that accept fiat money, especially the national currency (AUD), make trading much easier for Australians.
Lastly, consider the fees charged by the exchange. Regardless of your location, fees can make or break your experience, particularly when searching for the best site to buy Bitcoin in Australia. So, before choosing an exchange, make sure to understand the costs involved.
Now that we’ve covered Australian crypto laws and the standards by which exchanges are judged in the country, let’s discuss the exchanges that can and should be used in Australia.
