In my work as a family lawyer, I now see Bitcoin and Ethereum in property settlements regularly. Some clients assume crypto sits outside the law. Others forget to disclose it at all. Both assumptions cause real problems, from tax penalties to court orders. Here is where the law stands in October 2026.
Yes, crypto is legal to buy, hold and sell in Australia. It is property, not legal tender. New licensing rules for platforms have passed but aren’t in force yet, and in a separation, crypto must be disclosed and can be divided.
Is Crypto Legal in Australia?
Yes. No law bans individuals or businesses from buying, selling or holding cryptocurrency. It is not legal tender, because only the Australian dollar has that status. That means a business can choose to accept crypto, but no one can be forced to. In law, crypto is treated as property, and that single fact drives how it’s taxed and how it’s handled in family law.
What the New Digital Assets Framework Changes (and What It Doesn’t)
The Corporations Amendment (Digital Assets Framework) Bill 2025 passed Parliament on 1 April 2026. It received Royal Assent on 8 April 2026 and amends the Corporations Act to extend the financial services licensing regime to digital assets. The important detail many articles miss is timing: the framework commences on 9 April 2027. So the licensing requirement is not yet in force.
When it starts, two new categories will need an Australian Financial Services Licence: digital asset platforms, where an operator holds digital tokens for itself or for someone else, and tokenised custody platforms. The law regulates platforms, not the assets, so owning Bitcoin stays legal either way. It doesn’t apply to digital asset issuers or businesses using digital assets for non-financial purposes.
In the meantime, existing rules apply. Exchanges converting crypto to cash have had to register with AUSTRAC since 2018, and ASIC can regulate a token that works like a financial product.
How Crypto Is Taxed in Australia
The ATO treats crypto held as an investment as a capital gains tax (CGT) asset. Selling, swapping, spending or gifting it is generally a CGT event, and the ATO receives data from Australian exchanges, so gains are traceable.
- Current discount. Eligible resident individuals can generally claim a 50% CGT discount on assets held more than 12 months.
- Upcoming change. From 1 July 2027, the 50% discount is replaced with cost base indexation and a 30% minimum tax rate, applying only to gains accruing after that date.
- Personal use exemption. It covers only crypto acquired for under $10,000 and used mainly for personal purposes. Investment holdings don’t qualify.
Tax rules here are moving quickly, so confirm your position with a registered tax agent. Keep records of dates, AUD values and wallet addresses.
The Practical Risks
There is no government deposit guarantee if an exchange fails. Prices swing sharply, a lost private key can mean permanent loss, and scams targeting crypto holders remain common. Licensing will improve accountability from 2027, but it won’t remove these risks.
Crypto in Divorce and Separation
This is where I spend most of my time. The explanatory memorandum to the new law states that digital assets are subject to the same general legal frameworks as other assets, including family law. In a property settlement, crypto is treated like shares or a bank account. It goes into the property pool and can be divided, whether you were married or in a de facto relationship.
Here is what I tell clients:
- Disclose everything. Both parties must give full and frank financial disclosure, and that includes crypto in private wallets, exchange accounts and DeFi platforms.
- Expect valuation fights. A coin can move sharply between separation and settlement, so how and when it’s valued matters.
- Tracing is possible. Hidden crypto isn’t invisible. Exchange records, bank transfers and wallet activity can reveal it, and we work with forensic specialists when needed.
- Mind the tax. Transfers between former partners under a court order or binding agreement may qualify for CGT rollover relief, but you should confirm this with your accountant before moving anything.
- Plan ahead. A Binding Financial Agreement that deals with digital assets can set out how your crypto is treated before a dispute arises.
If you’re separating, our team handles dividing property after separation for married couples, and the same principles apply to de facto relationships. Deadlines apply, so don’t wait.
Holding crypto and facing a separation? At Collective Family Law Group, we’ll help you identify, value and protect your digital assets. Talk to a family lawyer about your crypto for confidential advice.
Frequently Asked Questions
Do I pay tax on crypto in Australia?
Generally yes. Crypto held as an investment is a CGT asset, so selling, swapping or spending it is usually a taxable event. A narrow personal use exemption applies only in limited cases.
Does the ATO know when you sell crypto?
Yes, in most cases. The ATO collects data from Australian exchanges, so trades are generally visible even without manual reporting. Keeping accurate records protects you.
Do crypto exchanges need a licence in Australia?
Not yet in the new form. The AFSL requirement for digital asset platforms is due to commence on 9 April 2027. Until then, AUSTRAC registration and existing ASIC powers apply.
Are cryptocurrencies other than Bitcoin legal in Australia?
Yes. Ethereum, stablecoins and most other crypto assets are legal to hold. Some tokens may be treated as financial products depending on how they’re structured.
Does crypto have to be disclosed in a divorce?
Yes. Crypto is property, and full financial disclosure is required in a property settlement. Failing to disclose it can have serious consequences in court.
