Virtual asset service providers (VASPs) — crypto exchanges, wallet providers, NFT platforms and digital asset businesses — faced their AUSTRAC compliance deadline earlier than other Tranche 2 entities, with obligations applying from 31 March 2026.

What is a virtual asset service provider?

Under AUSTRAC's expanded regime, you are a VASP if you provide any of the following services:

VASP registration with AUSTRAC

Unlike other Tranche 2 entities who simply enrol, VASPs must be registered with AUSTRAC. Operating as a VASP without registration is a criminal offence. If AUSTRAC refuses registration, you must cease providing virtual asset services.

Travel Rule compliance

The FATF Travel Rule requires VASPs to include originator and beneficiary information with virtual asset transfers above a certain threshold. AUSTRAC is implementing Travel Rule requirements for Australian VASPs — you must be able to collect, verify, transmit and receive this information.

Enhanced KYC for crypto customers

Crypto customers are considered higher risk by default. You must verify identity before allowing any transactions, screen against sanctions lists and PEP databases, and apply Enhanced Due Diligence to customers transacting in high-risk jurisdictions or with high-risk transaction patterns.

Transaction monitoring for VASPs

Blockchain analytics tools can identify suspicious on-chain activity. AUSTRAC expects VASPs to monitor for structuring (breaking large transactions into smaller ones), mixing/tumbling services, transactions from sanctioned addresses, and high-risk counterparty wallets.

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Related reading: AUSTRAC Tranche 2 complete guide · AML risk assessment guide · Customer due diligence explained · Frequently asked questions