AUSTRALIA GAZETTED THE ANTI-MONEY LAUNDERING AND COUNTER-TERRORISM FINANCING AMENDMENT ACT 2024 ON DECEMBER 10, 2024, WITH SCHEDULE 6 ENTERING INTO FORCE ON MARCH 31, 2026. The law updates the 2006 AML/CTF framework, replaces the « digital currency » concept with the broader « virtual asset » notion, and extends reporting obligations to five categories of services under AUSTRAC supervision.
🔑 Key takeaways
- Act No. 110 of 2024, royal assent on December 10, 2024; Schedule 6 in force from March 31, 2026
- Five categories of virtual asset services now fall under the AML/CTF perimeter
- The « Digital Currency Exchange Register » is renamed the « Virtual Asset Service Providers Register »
- The travel rule extends to virtual asset providers, remittance service providers and financial institutions
- Reporting obligations for unverified unhosted wallet transfers are deferred until March 31, 2029
A modernized framework built around the virtual asset concept
The text replaces the previous « digital currency » notion with the broader concept of « virtual asset. » This redefinition aligns Australian law with the international standards of the Financial Action Task Force (FATF) and significantly widens the scope of regulation.
A virtual asset is now defined as any digital representation of value that can be transferred, stored or traded electronically and that serves as a means of payment, a store of economic value, a unit of account or an investment vehicle. The definition also covers governance rights associated with arrangements involving digital representations of value, capturing tokens issued by DAOs (decentralized autonomous organizations).
Three categories remain explicitly excluded: fiat currency, items exclusively used in games, and loyalty points. The clarification prevents loyalty programs and gaming tokens from being inadvertently captured by financial regulation.
Five categories of services now regulated
Schedule 6 extends the AML/CTF perimeter to five categories of virtual asset service providers, mirroring FATF Recommendation 15. According to AUSTRAC’s guidance, these terms replace the previous digital currency exchange framework and broaden the scope to a wider range of services.
- Exchange between virtual assets and fiat currency
- Custody of virtual assets
- Exchange between virtual assets
- Transfers involving virtual assets
- Financial services linked to the offer or sale of a virtual asset by an issuer
Here is the comparison grid between the previous regime and the new framework:
| Service | Previous regime (DCE) | New regime (virtual asset) |
|---|---|---|
| Fiat/crypto exchange | Covered | Covered (sec. 50A) |
| Crypto/crypto exchange | Not covered | Covered |
| Custody | Partially covered | Covered |
| Transfers | Not covered | Covered + travel rule |
| Issuer-side financial services | Not covered | Covered |
« The amendment modernizes a 2006 framework and aligns it with FATF standards, while covering intermediaries that previously operated in a regulatory blind spot. »
AUSTRAC, 2026 guidance
The Virtual Asset Service Providers Register
The « Digital Currency Exchange Register » is renamed the « Virtual Asset Service Providers Register. » As a rule, a provider must be registered before delivering a service that requires registration, subject to transitional provisions.
AUSTRAC notes that digital currency exchange providers already registered were automatically converted into registered virtual asset service providers on March 31, 2026, with no reapplication required. This automatic transition avoids administrative disruption for compliant actors and accelerates the perimeter extension to the new services.
A three-step implementation timeline
Rollout spans nearly three years to give providers time to adapt internal procedures, KYC (Know Your Customer) tools and transaction monitoring systems.
| Date | Milestone |
|---|---|
| March 31, 2026 | Schedule 6 enters into force; automatic conversion of DCE registrants |
| July 1, 2026 | AML/CTF obligations apply to new services (excluding sec. 50A) |
| July 29, 2026 | Deadline to submit a registration application for providers that launched before July 1, 2026 |
| March 31, 2029 | Reporting obligations for transfers involving unverified unhosted wallets take effect |
Reporting, transfer, program, customer identification and record-keeping obligations for the new regulated services only take effect at these later transition dates, in line with AUSTRAC’s transitional guidance.
Alignment with FATF Recommendation 15
The Department of Home Affairs confirms that the sectoral changes align with FATF Recommendation 15, which covers five categories of virtual asset services: fiat exchange, exchange between virtual assets, transfers, custody or administration, and participation in financial services linked to the offer or sale of a virtual asset by an issuer.
The amendment also extends the travel rule to virtual asset service providers, remittance service providers and financial institutions. The rule requires the transmission of originator and beneficiary information on transfers above a set threshold, bringing crypto transaction surveillance closer to that of traditional financial networks.
Conclusion
The 2024 Amendment Act is not a market-conduct licensing regime for crypto assets in general. It amends the AML/CTF perimeter to determine when a company providing virtual asset services is treated as a reporting entity, must appear on the relevant register, and must comply with risk assessment, due diligence, reporting and record-keeping obligations under the AML/CTF Act and its rules.
For Australian players and international groups active in the region, the immediate milestone is the July 1, 2026 activation that triggers the expanded reporting obligations. Looking further ahead, the March 31, 2029 deadline on unhosted wallets will be a major test for the balance between compliance and innovation in the country, and could foreshadow the evolution of regional standards across the Asia-Pacific.
Sources
This article is published for informational and educational purposes only. It does not constitute investment advice. Do your own research (DYOR) before making any decision.
