---
type: country
domain: crypto-regulation
status: stable
tags: ["crypto-regulation", "asia_pacific", "fatf (australia is a founding member)", "legal"]
aliases: ["CC", "CCK"]
created: 2026-06-01
updated: 2026-04-02
compile_into: ["[[country--cocos-keeling-islands]]"]
sources:
  - name: "ASIC"
    url: "https://www.asic.gov.au"
    type: "official"
---

#  Cocos (Keeling) Islands (CC) — Crypto Regulation

> As an Australian external territory, all Commonwealth financial laws apply to the Cocos (Keeling) Islands without exception. Australia has a comprehensive and evolving crypto regulatory framework: (1) Corporations Amendment (Digital Assets Framework) Bill 2025, receiving Royal Assent 8 April 2026, requires Digital Asset Platforms and Tokenised Custody Platforms to hold an AFSL from ASIC, with formal commencement on 9 April 2027 and a 6-month transition period; (2) AUSTRAC registration has been mandatory for Digital Currency Exchange (DCE) providers since 2018, and from 31 March 2026, expanded to cover virtually all VASPs; (3) ATO treats crypto as property subject to CGT, with staking/mining/airdrop income taxed as ordinary income; (4) GST-exempt for digital currency since July 2017. Regulators: ASIC (financial products/AFSL), AUSTRAC (AML/CTF registration), ATO (tax).

## Overview

| Field | Value |
|-------|-------|
| Status | Legal |
| Risk Score | 25/100 (Low Risk) |
| Enforcement Level | Moderate |
| Region | [[domain--asia-pacific|asia pacific]] |
| Currency | [[entity--aud|AUD]] |

## Tax

| Type | Rate |
|------|------|
| Capital Gains (Personal) | CGT applies: gains taxed at marginal income tax rates (0–45%). 50% CGT discount applies for assets held >12 months. Short-term gains (held <12 months) taxed at full marginal rate. |
| Capital Gains (Corporate) | Corporate entities are subject to Australian company tax (25% base rate for small businesses; 30% for large corporates) on net capital gains. No 50% CGT discount for companies. Corporate crypto disposals are taxed as ordinary income at the corporate rate. |
| VAT on Crypto | No |
| Mining Tax | Mining rewards are taxed as ordinary income (at marginal rates) at fair market value in AUD on receipt. For commercial miners (running a mining business), proceeds are included as business income and mining equipment/costs may be deductible. |
| Staking Tax | Staking rewards taxed as ordinary income at fair market value in AUD at the time of receipt. Marginal income tax rates (0–45%) apply. No 50% CGT discount on the income portion. |
| Airdrop Tax | Initial allocation airdrops (first-ever token distribution) are not taxed as ordinary income on receipt but are subject to CGT on disposal with a $0 cost base. All other airdrops are taxed as ordinary income at fair market value on receipt. |

No crypto-specific tax guidance available.

## Licensing

| Field | Value |
|-------|-------|
| Required | Yes |
| Regulator | ASIC (Australian Securities and Investments Commission) and AUSTRAC (Australian Transaction Reports and Analysis Centre) |
| Framework | Corporations Amendment (Digital Assets Framework) Bill 2025 (AFSL / DAP / TCP); AML/CTF Act 2006 as amended (AUSTRAC DCE/VASP registration); Treasury Laws Amendment (Payments System Modernisation) Bill 2025 (stablecoin SVF regulation) |
| Ease | N/A |
| Cost | N/A |
| Timeline | N/A months |

## AML / KYC

| Field | Value |
|-------|-------|
| KYC Required | Yes |
| Travel Rule | Yes |
| FATF Member | Yes |
| FATF Status | compliant |

## DeFi

**Status:** active_monitoring

ASIC applies existing financial services laws to DeFi based on economic substance rather than technological form. ASIC has stated that regulatory obligations apply when identifiable parties influence a protocol's design or economic outcomes, regardless of claimed decentralization. The Corporations Amendment (Digital Assets Framework) Bill 2025 (Royal Assent 8 April 2026) brings DeFi platforms acting as Digital Asset Platforms into the AFSL regime. ASIC has identified crypto and DeFi regulation gaps as a top risk for 2026. No outright ban; engagement with industry ongoing.

## Stablecoins

**Status:** framework_in_progress

Australia's Treasury Laws Amendment (Payments System Modernisation) Bill 2025 introduces regulation of payment stablecoins as stored-value facilities (tokenised SVF). Stablecoin issuers will require an AFSL from ASIC. Large issuers (reserves >AUD 200M) will be subject to APRA prudential requirements. The Corporations Amendment (Digital Assets Framework) Bill 2025 (Royal Assent 8 April 2026) also brings stablecoin platforms into scope as Digital Asset Platforms. Full framework expected to be operational by 2027.

## NFTs

**Status:** no_rules

No specific NFT regulation

## Mining

| Field | Value |
|-------|-------|
| Legal | Yes |
| Electricity Cost | $0.12/kWh |
| Renewable Energy | 15% |
| Climate | tropical |
| Infrastructure | fair |

Mining is legal with moderate electricity costs and limited renewable energy share. Infrastructure is fair given remote island conditions.

## Geopolitics

| Field | Value |
|-------|-------|
| Stability | stable |
| Sanctions | No |
| Corruption Index | 70/100 |
| Ease of Business | moderate |
| Internet Freedom | free |
| Banking Access | moderate |

## Enforcement

Enforcement focused on unlicensed operators and consumer protection

## CBDC Status: wholesale_research

## FAQ

### Is cryptocurrency legal in Cocos (Keeling) Islands?

As an Australian external territory, all Commonwealth financial laws apply to the Cocos (Keeling) Islands without exception. Australia has a comprehensive and evolving crypto regulatory framework: (1) Corporations Amendment (Digital Assets Framework) Bill 2025, receiving Royal Assent 8 April 2026, requires Digital Asset Platforms and Tokenised Custody Platforms to hold an AFSL from ASIC, with formal commencement on 9 April 2027 and a 6-month transition period; (2) AUSTRAC registration has been m

### What is the FATF status of Cocos (Keeling) Islands?

Cocos (Keeling) Islands is classified by FATF as: compliant.

### Are VASPs licensed in Cocos (Keeling) Islands?

Yes, licensing is required for VASPs.

### What is the AML/KYC regime in Cocos (Keeling) Islands?

KYC is mandatory for crypto businesses.

---

*Data source: [Soken Crypto Legal Map](https://soken.dev/crypto-map/). Last reviewed: 2026-06-01.*

**Sources:**
- [ASIC](https://www.asic.gov.au)