Are Australians allowed to buy Bitcoin?
Yes, Australian residents, businesses, SMSFs and trusts are all allowed to buy Bitcoin in Australia.
Where can I buy Bitcoin in Australia?
Australian’s can buy Bitcoin from:
- Cryptocurrency Exchanges
- Over-the-Counter (OTC)
- Bitcoin Brokers
- Bitcoin ATMs
- Get paid in Bitcoin
- From friends and acquaintances
Top Australian exchanges to buy Bitcoin
- Independent Reserve
Established 2013 in Sydney, in addition to the crypto exchange, they provide an OTC service with local support and an option to insure your crypto assets. They comply with AUSTRAC’s AML laws and have strong KYC protocols. They’re a Gold Member of Blockchain Australia and have won Digital Currency Exchange of the Year 2019.
Established 2013 in Melbourne, their crypto exchange offers over 100 digital currencies, they provide an OTC service with local support. Cointree comply with AUSTRAC’s AML laws and have strong KYC protocols. They’re a Member of Blockchain Australia.
Established 2013 in Melbourne, their crypto exchange offers over 100 digital currencies, they provide an OTC service with local support. Coinspot comply with AUSTRAC’s AML laws and have strong KYC protocols. They’re a Member of Australian Digital Commerce Alliance.
Are there any restrictions around buying Bitcoin in Australia?
Generally, no. However, you need to be over 18 to use most services and when you purchase Bitcoin from Australian or foreign Bitcoin sellers, you will need to verify your identity. Some vendors may restrict the maximum amount you can purchase at any one time.
Why do I need to verify my identity when buying Bitcoin?
Opening an account with a cryptocurrency exchange and other vendors is similar to opening a bank account. Just as banks require you to provide 100 points of identification, so do the Bitcoin sellers. This process is known as KYC or Know Your Customer.
Because cryptocurrency exchanges are online businesses, they may require you to take a couple of extra steps such take a photo/selfie
Moreover, exchanges and similar organisations need to register with AUSTRAC, Australia’s financial intelligence agency. AUSTRAC requires DCEs (Digital Currency Exchanges) to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. That’s why going through a verification process is necessary.
What information do I need to provide when buying Bitcoin?
- First and last name
- Your home address
- Proof of identity (i.e. Driver licence, passport, etc)
- Email address
- Mobile phone number
- A copy of a utility bill
- A selfie holding either your ID or written message
The list is not exhaustive, but having these bits of information on hand will be sufficient in most cases.
How quickly can I purchase Bitcoin?
Some exchanges allow you to purchase Bitcoin in as little as 5 minutes. This includes the time it takes you to register with a Bitcoin exchange/seller. Otherwise you can expect to be buying Bitcoin with in 1 to 3 days.
What are examples of safe Bitcoin providers to buy from?
- Independent Reserve (exchange/OTC)
- Cointree (exchange)
- Coinbase (exchange/app)
How do I withdraw my Bitcoin from an exchange?
Firstly you need to create a Bitcoin wallet (learn more about Bitcoin wallets). Once you have created your wallet and copied your public address (equivalent to an account and BSB number), you can request to withdraw your Bitcoin.
How long does it take to withdraw my Bitcoin from an exchange?
Withdrawal times vary between exchanges. Once you have completed your verification process, you may be able to withdraw Bitcoin instantly. Other exchanges may require manual approval, whilst other exchange handle the process entirely manually.
Manual approvals are sometimes required because the exchange wants to ensure there’s no fraudulent or suspicious activity. For larger withdrawals, staff may need to approve the withdrawal. This is because it’s best practice to ensure 100% of the exchange’s cryptocurrency reserves cannot be hacked. Most exchanges store large portions of their crypto holdings in a cold wallet.