The scope of VASP registration now extends beyond the buying and selling of crypto assets with fiat currency
The virtual asset services currently specified by AUSTRAC include fiat-to-coin exchange, coin-to-coin exchange, arranging related exchanges, custody, and accepting instructions to transfer on behalf of clients. Whether a service is regulated also depends on the specific service definition and the territorial nexus; an ordinary enterprise merely holding its own coins does not automatically become a VASP on that basis. If a product also remits fiat currency on behalf of clients, the remittance service registration must be checked separately, and it cannot be assumed that on-chain settlement covers the fiat collection and payment leg.
The 2026 transitional rules must distinguish between legacy registrations and historical pending applications
Entities previously registered as DCEs automatically convert to VASPs from 31 March 2026 and do not need to re-register for the name change, but they must still update their information and implement the new obligations. The obligations for some new categories of services are deferred to 1 July, and the application window for eligible applicants closes on 29 July; the official rules state that specified persons who apply on time and have not yet received an approval or refusal decision may continue the relevant business. By October, new entrants cannot use this historical window to "operate first and apply later," nor can it be concluded in the reverse that all historical pending applicants are already in breach. The transitional periods for other obligations must be checked separately.
Whether a payment product can be offered must also clear the ASIC hurdle
ASIC's INFO 225 guidance requires determining, on the basis of rights and functions, whether digital assets and related facilities constitute financial products, and non-cash payment facilities are one such category. If a platform allows clients to maintain stablecoin balances and continuously make payments to merchants, it cannot claim that the entire wallet has financial product licensing merely on the strength of AUSTRAC registration. Even if some functions do not involve the platform directly holding assets, it should still be checked whether the specific facilities and services trigger an AFSL, authorised representative status or an applicable exemption, rather than ending the analysis with a "non-custodial" label.
The new platform law has been passed, but it cannot be written up in advance as a full set of obligations currently in force
The Corporations Amendment (Digital Assets Framework) Act 2026 received Royal Assent on 8 April 2026, and the Act provides that the entire amending Act commences on 8 April 2027. As of this verification, ASIC has consulted on the implementing rules. Accordingly, this is neither merely a policy proposal that has not yet been passed, nor does it mean that all new platform obligations are in force in October 2026. When designing custody, trading and client asset arrangements now, provision should be made for adjustment to the new digital asset platform and tokenised custody platform regimes, while complying with the rules applicable today.
Recommended actions
- Classify each service specified by AUSTRAC item by item, and verify VASP and remittance registration, territorial nexus and current status.
- If relying on historical transitional treatment, retain records of the service start date, application date, application category and AUSTRAC decision notices.
- Complete the financial product and non-cash payment facility analysis separately, verify AFSL, representative or exemption conditions, and do not treat AML registration as product approval.
- Prepare an implementation checklist for the new platform regime in 2027, distinguishing between bills already passed and supporting rules still under consultation.
Information note: This article provides general information and does not replace legal advice based on specific facts.
References
- Virtual asset designated services — AUSTRAC
- AML/CTF transitional rules 2026 — AUSTRAC
- Explanatory Statement to the AML/CTF Transitional Rules 2026, Part 5 item 14 — Australian Government, Federal Register of Legislation
- Digital assets: Financial products and services, INFO225 — Australian Securities and Investments Commission
- Corporations Amendment (Digital Assets Framework) Act 2026, section 2 — Australian Parliament / Federal Register of Legislation
- 26-245MR ASIC consults on implementation of new digital asset laws — Australian Securities and Investments Commission
