Australia AML/CTF Amendment Act 2024: Virtual-Asset Reforms

The Act replaces the former digital-currency terminology with the broader concept of a virtual asset. The amended definition covers digital representations of value that may be transferred, stored or traded electronically and function as a medium of exchange, store of economic value, unit of account or investment. It also captures governance-style rights connected with arrangements involving digital representations of value, while excluding money, game-only value and customer loyalty points.

Schedule 6 expands the AML/CTF perimeter for virtual asset service providers. In addition to fiat-to-virtual-asset exchange, the amended designated services include virtual-asset safekeeping, virtual-asset-to-virtual-asset exchange, transfers involving virtual assets and financial services connected with an issuer's offer or sale of a virtual asset. AUSTRAC guidance states that these terms replace the earlier digital currency exchange provider framework and extend regulation to a wider range of services.

The reforms rename the Digital Currency Exchange Register as the Virtual Asset Service Provider Register and establish the concept of a registrable virtual asset service. A provider generally must be registered before providing a registrable virtual asset service, subject to transitional arrangements. AUSTRAC says existing registered digital currency exchange providers automatically became registered virtual asset service providers from 31 March 2026.

The Amendment Act also links virtual assets to the broader transfer-of-value framework. AUSTRAC describes the travel rule as generally applying to virtual asset service providers, remittance service providers and financial institutions. The detailed Rules and transitional guidance should be read alongside the Act because some reporting, transfer, program, customer due diligence and record-keeping obligations for newly regulated virtual asset services do not apply until later transition dates.

The bill was introduced in the House of Representatives on 11 September 2024, passed both Houses on 29 November 2024 and received Royal Assent on 10 December 2024. Schedule 6, which contains the core virtual-asset amendments, commenced on 31 March 2026. Home Affairs describes the sector changes as aligned with FATF Recommendation 15, covering five categories of virtual-asset services: exchange with fiat, exchange between virtual assets, transfers, safekeeping or administration and participation in financial services related to an issuer's offer or sale.