Australia is one of the countries that have always led in the attempt to regulate the sector of cryptocurrency. Since 2018, digital currency businesses have been registered under AUSTRAC. However, in 2025, stronger changes are on the way with a firmly moving trend toward Travel Rule conformity. The Travel Rule represents an internationally recognized measure designed to prevent illegal money laundering. Now it’s no longer something so far away; it’s becoming an imminent reality for all crypto exchanges and wallet suppliers working in Australia today.
The financial intelligence agency of the nation, AUSTRAC, is leading the drive in ensuring the crypto industry complies with transnational transparency obligations.
Proposed by the Financial Action Task Force (FATF), it is one of the measures to curb the menace of financial crime within the world of cryptos. In simple terms, the Travel Rule entails that VASPs are supposed to be well informed and furnish specific info concerning the originator and the beneficiary in a crypto dealing.
This works in much the same way as a wire transfer through traditional banks. It aims to preclude the use of cryptos in ill deeds by fleshing out their traceability and accountability in digital transactions.
Hence, if there is a crypto transfer between two regulated entities under this rule, both have to swap identification data on the originator and beneficiary, including their full name and account details.
The major players in this sphere are AUSTRAC, the financial intelligence watchdog in Australia. It was tasked with overseeing digital currency exchanges dealing mostly in the fiat-to-crypto conversion. To date, there have been no existing enforceable provisions implementing the Travel Rule.
The tide is shifting as we speak. AUSTRAC is proactively seeking to extend the AML/CTF framework to almost all activities related to crypto and establish a few clear standards for adherence with the Travel Rule. These changes are set to come into effect in March 2026; therefore, this may offer some assurance but not much to businesses.
This more specifically means that digital businesses need to consider that, at present, there are gaps in the coverage of crypto-to-crypto transfers, custodial wallets, token issuance, and other value transfer services. Such a gap represents what AUSTRAC wants to close with its reform that is to come.
The draft amendments proposed by AUSTRAC toward this end generally relate to two key points:
This shall effectively need VASPs to ensure proper identification has been done on both sides of a transaction—originator and beneficiary—and these identifications must be securely exchanged between the transacting parties. That is to say, businesses are no longer able to act in isolation. Trade data flows need to be shared and recorded based on set technical and regulatory standards.
The most noticeable change for most providers in Australia, where implementation is concerned, is in the updating of internal procedures and technical infrastructure, to meet the Travel Rule demands. This is not just a tick-the-box exercise, but an exercise of overall change.
All crypto-businesses except fiat exchanges must register with AUSTRAC. This includes custodian wallet services, token platforms, and even some decentralized operations that meet the designated VASP criteria.
Any VASP would need to verify the identity of each consumer, together with storing data regarding the origin of a marketing . Otherwise, originator and beneficiary info would need to come with the marketing, or the commerce would fail at initiation.
It means collecting the following:
Compliance requires integration with secure, cross-platform tools for exchanging info. This might mean the need to adopt standardized protocols at the company level, or the formation of partnerships with conformity software suppliers to ensure interoperability.
Security, automation, transparency — that’s where the focus is. You simply can’t rely on sharing data manually if the volume increases.
Businesses must develop policies to determine how they handle non-compliant entities or unregulated wallets. If one end of a transaction isn’t regulated, that doesn’t mean the marketing is exempt. VASPs need to evaluate these situations and have procedures in place to mitigate associated risks.
For instance, interactions with self-hosted wallets or foreign entities outside the Travel Rule framework may need additional scrutiny or even restriction.
While the final enforcement deadline is March 2026, AUSTRAC has made it clear that firms should not delay preparation. The timeline is designed to allow for adequate onboarding of technology, staff training, system upgrades, and stakeholder education.
Companies are being encouraged to adopt Travel Rule standards as early as possible to avoid operational disruption or enforcement risks when the deadline arrives. Those who wait until the last moment may face challenges with banking partners, counterparties, or even regulatory penalties.
There’s a strategic advantage to being an early mover. Compliant firms will find it easier to maintain relationships with institutional partners, onboard clients, and expand internationally. Moreover, having a robust conformity infrastructure in place strengthens your brand and builds trust with users.
For startups in the crypto space, being seen as responsible and proactive in conformity can be a differentiator. Investors, customers, and partners alike are becoming more selective — and regulatory readiness plays a big role in decision-making.
The Travel Rule marks a significant shift in how crypto-business is done in Australia. For years, the industry operated in a semi-regulated zone, especially around peer-to-peer and crypto-native transmissions. That era is ending.
AUSTRAC’s embrace of the Travel Rule is a signal that Australia is committed to being a safe, transparent, and globally aligned digital asset hub. This creates both opportunities and responsibilities for crypto-businesses.
It’s not about making things harder — it’s about making the ecosystem safer, more respected, and more interconnected with the global economic system.
The Travel Rule isn’t just another conformity box. It’s a mindset shift toward liable innovation in the crypto space. As AUSTRAC brings these demands into effect, businesses that take the initiative now will be better positioned to lead the next phase of crypto adoption in Australia and beyond.
Get your processes in place. Train your team. Choose the right tools. The time to prepare is now — before the 2026 deadline becomes tomorrow’s emergency.
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