Cryptocurrency trading is becoming more and more popular all over the globe each day (Australia is no exception). In fact, based on Roy Morgan's research published in April 2022, over 1 million Australians own cryptocurrencies. To acquire and manage these assets, traders surely want to find the best crypto exchange Australia.
However, a lot of countries tend to impose certain regulations on crypto assets and cryptocurrency exchanges due to the fact that they lay in the financial investment field and are prone to being involved in malicious activities. Thus, for an exchange to be accessible in Australia, it must comply with its crypto regulations.
The biggest exchanges like Binance, Coinbase, Kraken, and others surely do that. However, then another question arises: How to decide if it is the best crypto exchange in Australia? Don’t worry, in this article, I’ll address all points that should be considered when searching for a great Australian crypto exchange!
The exchanges that will be discussed in this article include:
But first, let’s talk about cryptocurrency regulations in Australia.
Australian Cryptocurrency Regulations
Before jumping into the list of the best crypto exchanges in Australia, let's discuss the situation with cryptocurrencies in this country. Is crypto trading legal here? The answer is: yes, it is. It is legal to store, send and receive, use as a payment method, and, of course, trade a variety of crypto assets.
Australia always welcomes new innovations, including those from the cryptocurrency and blockchain world. When cryptocurrencies and exchanges gained full legal status in 2017, Australian regulations barely intervened with the sector.
However, due to the fact that transferring value in digital currencies may aid illegal acts, AML and CTF safeguards have been taken into account in Australian crypto legislation as of 2018. As a result, the AML / CFT framework began to include digital currencies under the Financing Act of 2006.
These formal names make it seem very complicated but, simply put, the Act requires exchanges to confirm their client's identities, keep track of transactional activity, and report to AUSTRAC any transactions or activity that appears suspicious or involves large sums of money (exceeding $10,000).
Speaking of it, the government of Australia requires all cryptocurrency exchanges to register with AUSTRAC, which oversees and protects a Digital Currency Exchange Register. Besides that, all exchanges must adhere to Australian Securities and Investments Commission (ASIC) regulations.
However, while these are required, some exchanges that can still be legally used in Australia are not registered with AUSTRAC. I’ll tell you how that is possible later.
Lastly, if you're looking for the best site to buy Bitcoin in Australia, it's also worth noting that all cryptocurrencies in Australia are treated as investment assets by the Australian Taxation Office (ATO). Therefore, they are subject to the Capital Gains Tax (CGT), which a tax applied when buying goods or services using crypto, trading crypto, selling crypto, converting it to AUD, or even gifting it to someone else.
That’s basically all you need to know about crypto regulations in Australia. Now, we should determine what makes an exchange worth the title of “the best crypto exchange Australia.”
Best Crypto Exchange Australia: Evaluation Criteria
So, the last thing you need to know before proceeding with this best crypto exchange in Australia list is the criteria that make them the best.
First things first, since Australia does have pretty strict regulations regarding everything related to crypto, for an exchange to be considered the best, it must be compliant with those regulations. There are some great exchanges you can legally use in Australia that are not registered with AUSTRAC, though. Despite that, they still comply with the necessary regulations.
Moreover, features are always a criterion you should consider. Do note that even the most feature-packed exchanges could limit their services in certain countries. So, if you want to use a specific feature of an exchange, you have to make sure you can access it in Australia.
Another important factor is Australian Dollar (AUD) support. Trading is so much easier on exchanges that accept fiat money. And, if you are an Australian, you surely want to be able to buy crypto using your national currency.
The last thing is the fees charged by the exchange. It doesn’t matter in what country you live, this is a factor that could often make it or break it, especially if you're searching for the best site to buy Bitcoin in Australia. So, before picking an exchange, make sure to figure out how much you’ll have to pay for its services.
That's it, now that you are aware of Australian crypto laws, as well as the standards by which an exchange is judged to be the best in the country, it's time to discuss the exchanges that can and should be used in Australia.