Australia is one of the states that have already created a legal environment for those who want to use and invest in cryptocurrency. Any person who wants to open a cryptocurrency company in Australia is required to register with the local institutions.
It is also necessary to know that cryptocurrency operations are taxed following the tax laws created for this business field.
The registration of a cryptocurrency company must follow the standard procedure for company incorporation in Australia, as well as some rules created especially for this sector.
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How can one register a cryptocurrency company in Australia?
The main aspects investors should decide upon are the same as the ones applicable in the case of the registration of any other legal entity: 1) establishing a suitable trading name and 2) selecting a proper legal entity.
Each company type provides various advantages and investors who are not sure which structure would be more suitable for them can request consultancy services from our specialists in company formation in Australia.
Another important step is to apply for the Australia Business Number (ABN), that is compulsory for all companies that are registered on the Australian territory.
Please mind that the company’s representatives will have to make sure that they have a crypto license in Australia, if the selected field of activity requires this.
Another important task to complete during the procedure of company formation in Australia is the registration with the local institutions.
Apart from the institutions usually involved in the registration of an Australian business, a crypto company will need to register with the Australian Transaction Reports and Analysis Centre (AUSTRAC).
What are the main cryptocurrency regulations in Australia?
Australia has made significant advancements in creating a legal framework for cryptocurrency users and businesses. One of the laws applicable to this field is the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, Section 5.
Another regulation is that cryptocurrency businesses may need to apply for an Australian Financial Services License, if the cryptocurrency company offers a financial service or if the coins represent financial products.
This represents a crypto license in Australia, necessary for certain types of operations. Please request information on how to apply for the license from our team of consultants in company registration in Australia.
In the case of other cryptocurrency operators, they need to be exempt from licensing requirements in order to operate without the need for this type of license.
License holders must develop operations that can be qualified as financial products or financial services. The broad definition of these terms can be found in the Corporations Act and the INFO 225 information sheet.
How popular is cryptocurrency in Australia?
Given that cryptocurrency operations are legal in Australia, the interest of the general population in this new type of currency is increasing.
Those who want to open a cryptocurrency company in Australia should know that the characteristics of the Australian market are the following:
- in December 2021, 28,8% of Australians owned cryptocurrency;
- from 2020 to 2021, the adoption of this currency increased in Australia by 56%;
- from the 28,8% of cryptocurrency owners, 72% of them prefer Bitcoin;
- the largest number of users can be found in Western Australia (32,9%);
- persons who are very young tend to have the highest interest in investing in cryptocurrency (cryptocurrency adoption increased from 25% to 50% from 2020 to 2021 for those with an age of 18-24 years old).
For additional information on how to obtain a crypto license in Australia, please refer to our consultants.
Please mind that if you want to open a company in Australia as a cryptocurrency business, other rules of law can be applied to this sector. For instance, rules concerning the protection of the consumers are applied in this case.
The main rules of law are the Competition and Consumer Act 2010 (Schedule 2) and the Australian Consumer Law, to name a few basic regulations.
Besides these, when you will set up a company in Australia in this field, you must also observe the regulations established under the Electronic Transactions Act 1999.
This law is applicable to electronic transactions which use blockchain technology or the ledger technology, which are common mining techniques for cryptocurrency businesses. Our consultants can offer more details.
Foreign businessmen who do not want to go through the entire company formation procedure can also purchase an Australian shelf company that they can use for a cryptocurrency business.
However, after the purchase, the company will need to comply with the regulations for cryptocurrency business and the investors may need to apply for various licenses or to obtain certain approvals.