Before you set up a cryptocurrency exchange, determine the structure of your cryptocurrency exchange:

  • Crypto to fiat or crypto to crypto
  • Virtual assets to be exchanged
  • Broker or market maker
  • Provide e-wallets
  • Centralised or decentralised
  • Other services (cross-border payments, etc)?
    • Draw up an end-to-end funds flow diagram
    • Determine what services will be provided in Australia
    • Set up an Australian entity (if required)
    • Seek legal advice on which Australian regulatory regimes apply
  • Do you need an Australian Financial Services Licence (AFSL)?
  • Do you need to comply with the Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) Regime?
    • Design and implement an AML/CTF Program including an AML/CTF Risk Assessment (if required)
    • Enrol and register as a Digital Currency Exchange with AUSTRAC (if required)
  • if exchanging cryptocurrency for fiat and vice versa, and
  • if geographical link to Australia
    • Prepare and lodge an AFSL application (if required)
    • If you will outsource any functions, ensure appropriate outsourced agreements are drafted and executed
    • Draft Terms and Conditions, Privacy Policy and Data Breach Policy for your exchange
    • Draft Financial Services Guide and Product Disclosure Statement (if required)

Next steps

Read our blog on 5 FAQs for setting up a cryptocurrency exchange in Australia.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.