Virtual asset-to-fiat exchange and OTC

The source treats DCE and VASP as the same scope under a new name. Instead, distinguish the historical exchange of fiat currency for digital currency from the expanded scope of designated virtual asset services in 2026. It is not correct to say that crypto-to-crypto exchange was comprehensively covered automatically by the original DCE in 2018.

The source says VASP takes effect from April 2026. Instead, the original DCE automatically transitioned by law to VASP on 31 March 2026. The online migration and enrolment-information update window runs until 29 July 2026; automatic continuation and updating information are separate matters.

The official Digital Assets Framework Act 2026 is Act No. 38 and received Royal Assent on 8 April 2026. The commencement table in the official Act and ASIC's October materials specify 8 April 2027; earlier materials from ASIC state 9 April. The discrepancy has been recorded, and the former date is taken as authoritative.

DAP/TCP’s new law has not commenced as at 5 November 2026. CP392 specifies that applications open on 8 April 2027, with existing platforms to apply or vary by 7 October; the general transition ends on 8 October. Do not promote future authorisation as approval already granted.

CP392’s asset, transaction settlement, responsible manager and three NTA financial proposals remain under consultation. Attachment 4 incorporates the 20 October revised version. AUD 14 million, AUD 7 million, AUD 2 million or AUD 200,000 must not be described as a uniform minimum share capital already in force.

Remove claims that VASP has a statutory minimum capital of AUD 1 or that 100 shares by default constitutes compliance. Distinguish company share capital, cash, regulatory NTA and client assets. AUSTRAC has no uniform amount set but requires actual resource capability.

The deferral of the main virtual asset obligations to 1 July 2026 does not apply to 50A; the historical continue-to-operate rule for timely applications made by 29 July 2026 cannot be applied to new applicants now.

AFSL and market or clearing and settlement obligations for existing financial products may already apply in 2026; the deadline for a INFO225 no-action application is 30 September 2026. Current compliance cannot be deferred by relying on a future DAP framework.

The source’s annual compliance reporting period of 2 January to 31 March is out of date. Change it to the financial year: the next period runs from 1 July 2026 to 30 June 2027, with submission from 1 July to 30 September 2027.

The source’s statement that all transactions over AUD 10,000 must be reported to TTR is inaccurate. Correct this to actual cash of at least the equivalent of AUD 10,000, reported within 10 business days after the transaction. Electronic transfers and crypto-only transfers are not triggered solely by their amount.

Supplement: SMR terrorism financing reports are due within 24 hours; other reports are generally due within 3 business days, subject to the reasonable suspicion test. IFTI, IVTS and reports concerning unverified self-hosted wallets have different transitional arrangements; do not say that all virtual asset transfers are currently reported to IFTI.

Do not present passports, police certificates and electronic signatures for every shareholder holding at least 10% as a fixed statutory checklist for every case; instead, assess the entity structure, entire control chain, key personnel and official requests for further information.

The local-director requirement for an Australian Pty Ltd is separate from the Australian-residency condition for the AML responsible person at an Australian service location; the AFSL responsible manager is a third role. In addition, each director must apply personally for a Director ID before appointment, and an external appointee must not be a nominee only.

Correct generalisations that all financial institutions require an AFSL, all lending requires an AFSL, all VASP must have AFCA and buy PI insurance for clients, and all must be audited; assess by product, retail service, exemption and actual licence conditions.

The source’s overall timeframe of 4—6 months, account-opening timeframe of 2—4 weeks and AUD 10,000–30,000 are not official fixed commitments or government fees. AUSTRAC’s 90-day period restarts when supplementary information is submitted. The general ASIC targets distinguish between 70% of complete applications within 150 days and 90% within 240 days.

Supplement: an acquisition is not a transfer of a licence; distinguish the different notification deadlines: AUSTRAC 14 days, 30 business days for a change of control under AFSL, 10 business days for general AFSL information, and 28 days for most company information.

The three-year validity period and renewal 90 days before expiry apply to VASP registration; they must not be applied as a three-year licence replacement cycle for AFSL. Entities that do not operate for an extended period risk withdrawal or cancellation.

Correct the misdescription of Westpac as the Bank of Western Australia; remove guarantees of bank account opening, lists of brands said to be already registered, claims of globally recognised certification and international rankings of prestige. Unverified commercial comparisons must not be presented as facts.

GST registration is not automatic on company establishment; it depends on GST turnover and the nature of the services. Fees for facilitating transactions and directly buying or selling digital currency may receive different GST treatment.

The service is to draft the entity’s risk assessment, AML/CTF policies and procedures; it is not to draft the national anti-money laundering regulations. Attribution does not constitute an endorsement or certification by ASIC or AUSTRAC, or a statement that a programme has been approved.