Best Crypto Exchanges in Australia

Best Cryptocurrency Exchanges in Australia

After analysing over 20 platforms, our team identified the top five exchanges for Australian investors. Our selection criteria included AUSTRAC compliance, diverse cryptocurrency options, user-friendliness, support for AUD deposits, and low transaction fees. This guide aims to help you make informed and secure investment choices in the cryptocurrency market.

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1. CoinSpot

CoinSpot, located in Melbourne, is Australia’s top cryptocurrency exchange with over 2.5 million users. It provides access to more than 450 crypto assets, including prominent currencies like Bitcoin, Ethereum, and Solana, alongside newer and meme coins like Celestia, WIF, and PEPE. Known for its robust features, CoinSpot offers a secure wallet, staking, NFT support, and crypto ETFs.

Certified by Blockchain Australia and protected by two-factor authentication, CoinSpot prioritizes user security. Its intuitive interface, CoinSpot Mobile App, and diverse trading tools accommodate all investor levels. The exchange's competitive fee structure, with market order rates starting at 0.1%, enhances its appeal.

• ‍Fees: Market order fees start at a competitive 0.1%.‍
• Supported Assets: Offers a portfolio of over 450 digital currencies.‍
• Regulation & Licensing: Certified by Blockchain Australia and licensed by AUSTRAC.‍
• AUD Deposit Methods: Supports Bank Transfer, Credit/Debit Card, POLi, PayID, BPAY, and Osko.

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2. eToro

eToro is Australia's leading platform for trading crypto stocks and ETFs, offering a broad range of over 4,500 assets. Investors can trade popular cryptocurrencies like Bitcoin and Ethereum, as well as stocks such as Coinbase and MicroStrategy. eToro also provides access to the iShares Bitcoin ETF (IBIT) by Blackrock, among other commodities and indices.

eToro uniquely positions itself as the only platform where investors can gain exposure to crypto equities and companies that benefit from the sector's underlying growth. This feature allows for greater diversification, enabling investors to broaden their portfolios with assets directly linked to the expanding cryptocurrency industry.

• ‍Fees: Variable based on the spread, with zero upfront trading fees. Our tests found an average of 1-2% average spread.‍
• Supported Assets: Over 4,500 assets, including cryptocurrencies, stocks, ETFs like the iShares Bitcoin ETF, and more.‍
• Regulation & Licensing: Compliant with ASIC regulations, Australian Financial Services Licence number: 491139.‍
• AUD Deposit Methods: Supports Bank Transfer, Debit Card, Credit Card, and POLi.

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3. Kraken

Kraken is the premier platform for institutional investors in Australia, offering unparalleled liquidity and a strong global presence with over 9 million users in 190 countries. With a quarterly trading volume of $207 billion, Kraken provides robust access to more than 200 cryptocurrencies, including Bitcoin, Ethereum, Celestia, and Solana.

The exchange supports institutional-grade trading with its advanced Kraken Pro platform, featuring low spreads, high liquidity, and enhanced rate limits. Australian users benefit from multiple AUD-compatible payment options such as Bank Transfers, PayID, Osko, and credit cards. Kraken’s commitment to convenience extends to its mobile apps for iOS and Android and specialised staking services offering up to 24% annual returns.

• ‍Fees: Maker fees at 0.01%, Taker fees at 0.02%.‍
• Supported Assets: Over 200 spot markets and 100+ margin markets.‍
• Regulation & Licensing: Registered with AUSTRAC as a Digital Currency Exchange.‍
• AUD Deposit Methods: PayID, Osko, Bank Transfer, RTGS, and debit/credit cards.

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4. Bybit

Bybit is the premier platform for derivatives trading in Australia, specialising in futures and options. Headquartered in Dubai, Bybit attracts a significant Australian user base with its offering of over 180 derivatives contracts. The platform handles more than $20 billion in daily trading volume and allows up to 100x leverage, providing ample opportunities for traders focused on futures and perpetual contracts.

Bybit supports a wide range of cryptocurrencies, surpassing standard offerings like Bitcoin, Ethereum, and USDT with access to over 1,100 assets. Australian users benefit from convenient AUD deposit options, including Credit Cards, Debit Cards, Bank Transfers, POLi, and PayID. With competitive fees starting at 0.01% and robust security measures featuring Triple-Layer Asset Protection, Bybit is a top choice for advanced derivatives traders.

• ‍Fees: Spot trading at 0.1%; derivative fees at 0.01% for makers and 0.06% for takers.‍
• Supported Assets: Over 1,100 cryptocurrencies, including 180+ derivatives contracts.‍
• Regulation & Licensing: Registered in Dubai and Seychelles, enhancing its global reach.‍
• AUD Deposit Methods: Credit Card, Debit Card, Bank Transfer, POLi, PayID, and Google Pay.

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5. Independent Reserve

Independent Reserve, based in Sydney, is the top platform for Self-Managed Super Funds (SMSFs) in Australia. Established in 2013, the exchange supports over 25 leading cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), and Solana (SOL). It offers competitive fees and multiple deposit options, including instant AUD, USD, and NZD deposits via bank transfers, PayPal, and cards.

The platform is renowned for its rigorous compliance with financial standards and security, holding ISO 27001 certification and undergoing annual audits. Independent Reserve is trusted by over 300,000 investors, including SMSFs and institutional clients, and offers exceptional customer support and a user-friendly mobile app.

• ‍Fees: Starting at 0.5%, decreasing to 0.02%.‍
• Supported Assets: Over 25 top cryptocurrencies.‍
• Regulation & Licensing: Regulated by AUSTRAC and ASIC, serving Australia and New Zealand.‍
• Deposit Methods: PayID, bank transfers, PayPal, and debit/credit cards for AUD, USD, and NZD deposits.

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Is Crypto Regulated in Australia?

Yes, cryptocurrency is regulated in Australia. To be compliant, exchanges must be listed on the Digital Currency Exchange (DCE) registrar with AUSTRAC and adhere to anti-money laundering (AML) and know-your-customer (KYC) regulations.

In October 2023, the government proposed a new framework to further regulate crypto exchanges and digital asset platforms by integrating them into the Australian Financial Services Licence (AFSL) regime. This framework introduces 'digital asset facilities' as a new financial product category. Platforms holding assets over $5 million or individual client assets exceeding $1,500 will need to obtain an AFSL.

These regulations aim to provide consistent oversight and enhanced consumer protection, reflecting the government's commitment to a controlled yet innovative digital asset market.

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How Does the ATO Tax Crypto?

The Australian Taxation Office (ATO) classifies cryptocurrencies and NFTs as assets, subjecting them to Capital Gains Tax (CGT). Profits from trading or selling these digital assets are taxable. The ATO's regulations apply to both domestic and international earnings, ensuring that global income from crypto and NFT investments is taxed under Australian law.

Tax implications for digital assets vary based on specific scenarios:

• ‍Capital Gains Tax (CGT): Profits from selling or trading cryptocurrencies and NFTs are subject to CGT.‍
• Income Tax: Digital assets received as payment for goods or services within a business context are considered taxable income.‍
• Goods and Services Tax (GST): Businesses using crypto for purchases can claim GST deductions on those transactions.‍
• Mining and Staking: Income from mining and staking is taxable. If conducted as a business, the income is assessable, and related expenses are deductible.‍
• Business-Held Assets: For businesses trading digital assets, trading stock rules apply instead of CGT regulations.

For precise and current information on compliance and taxation, refer to the ATO's official Digital Assets guidelines. These resources provide comprehensive tax details for individual investors and businesses.

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Bottom Line

In summary, Australia offers a secure and regulated environment for cryptocurrency investments, with stringent oversight from ASIC and AUSTRAC ensuring high consumer protection standards. Investors benefit from diverse funding options and access to top-rated platforms, including CoinSpot, eToro, Kraken, Bybit, and Independent Reserve. Each exchange provides unique strengths to meet varying investment needs, making the Australian crypto market both robust and versatile.