Australian Cryptocurrency Exchanges
Just like a stock exchange is a portal to buy and trade shares in publicly listed companies. Cryptocurrency exchanges give access to digital currency. There are relatively few that service Australia and even fewer that are registered.
Australian Cryptocurrency Exchanges
Registered Australian Cryptocurrency Exchanges
An exchange however needs an Australian financial services (AFS) licence issued by the Australian Securities and Investments Commission (ASIC) to operate. You can check if an exchange has an AFS licence here at the ASIC Connect site.
MoneySmart also have a list of companies they advise not dealing with. List of companies you should not deal with.
In Australia all cryptocurrency exchanges must be registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC). AUSTRAC is the Australian Government agency responsible for detecting, deterring and disrupting criminal abuse of the financial system to protect the community from serious and organised crime.
Another final check you can do when you go to sign up to an exchange is to see if they do ‘know your customer’ (KYC) checks, also known as ‘Anti Money Laundering’ (AML) checks. These are generally where you must provide proof of identity with Photographic ID.
Australian Cryptocurrency Exchanges with good credentials
Being a relatively young industry, it can be difficult for newcomers to identify which exchanges they can trade with while maintaining confidence in the security of their assets.
Once we have found out an exchange is registered in Australia, we can narrow the list by checking reviews and reputations. Check the reviews online, keep in mind no exchange will get 100%.
Blockchain Australia is good place to check to see if an exchange is legit. It is the industry body that represents Australian businesses and other organisations participating in the digital economy through blockchain technology.
Can you easily transfer Australian Dollars to the exchange?
Advice on making Fiat Currency Deposits. It has come to our attention that Australian banks are often wary of their customers making investments in cryptocurrencies. Whilst this is an unfortunate and dubious concern, it is a reality, and something that we need to stay abreast of. As a consequence, we would like to advise all of our customers to never explicitly use the word "Bitcoin" or other cryptocurrency related terms in any transaction description entered on a deposit made from your bank, as this is likely to draw unwanted attention and may result in unexpected bank account closures.
Note: Fiat money is a currency with no intrinsic value but often established as money by government regulation. The Australian Dollar is Fiat currency.
Now might be a good time to read our article on the cryptocurrency debate in Australia.
Registered Australian Cryptocurrency Exchanges
An exchange however needs an Australian financial services (AFS) licence issued by the Australian Securities and Investments Commission (ASIC) to operate.
In Australia all cryptocurrency exchanges must be registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC). AUSTRAC is the Australian Government agency responsible for detecting, deterring and disrupting criminal abuse of the financial system to protect the community from serious and organised crime.
Another final check you can do when you go to sign up to an exchange is to see if they do ‘Know Your Customer’ (KYC) checks, also known as ‘Anti Money Laundering’ (AML) checks. These are generally where you must provide proof of identity with Photographic ID.
A list of a few registered Australian Cryptocurrency Exchanges below.
In Summary
Once you find an exchange that satisfies the registration requirements then the rest is a matter of choice. Are they easy to deal with? Are the rates competitive? Do they exchange they coins you wish to purchase?
As ever, there is plenty of room to do your own research.
Photo credits: Simon Dawson | Bloomberg via Getty Images, Bermix Studio | Unsplash, Herald Sun, Photoholgic | Unsplash