Privacy Coins Banned on Australian Crypto Exchanges: What You Need to Know

Written By Ryan Fulton Tagged As privacy coins Australian crypto ban Monero Zcash crypto regulation

If you own Monero, Zcash, or Dash in Australia, you can still hold them. But if you try to trade them on any major local exchange like Independent Digital Assets Exchange or CoinSpot, you’ll hit a wall. Since early 2025, Australian crypto platforms have quietly but firmly removed all privacy coins from their trading pairs. It’s not a law that says you can’t own them - it’s a rule that says exchanges can’t list them. And that makes all the difference.

Why privacy coins got banned

Privacy coins are designed to hide who sent money, who received it, and how much was transferred. Monero uses ring signatures and stealth addresses. Zcash uses zero-knowledge proofs. These aren’t just fancy tech - they’re built to make transactions untraceable. That’s great if you want financial privacy. It’s a nightmare for regulators trying to stop money laundering and terrorist financing.

Australia’s financial watchdogs, ASIC and AUSTRAC, don’t ban ownership. They ban the platforms that make trading easy. Why? Because exchanges are required to know their customers - that’s KYC (Know Your Customer) and AML (Anti-Money Laundering) rules. If you can’t see who’s sending funds or where they’re going, you can’t comply. And non-compliance means losing your license, facing fines, or even criminal charges.

In 2025, 73 global exchanges delisted privacy coins. Australia wasn’t the first, but it was one of the most consistent. Japan banned them outright in 2018. South Korea’s top five exchanges followed in early 2025. Binance pulled them from U.S. and European platforms in February 2025. Kraken did the same in Canada. Poloniex removed Monero globally after pressure from the U.S. Treasury. Australia’s move wasn’t extreme - it was expected.

Who’s enforcing the ban?

It’s not a single decree. It’s a slow, steady pressure. AUSTRAC, which oversees digital currency exchanges under the Anti-Money Laundering and Counter-Terrorism Financing Act, has been cracking down on non-compliant platforms since 2022. They’ve canceled registrations, suspended operations, and refused new applications from exchanges that couldn’t prove they could track transactions.

ASIC, the corporate regulator, has been equally aggressive. They’ve taken legal action against Qoin, Block Earner, and Finder Wallet for offering unlicensed financial products. In 2022, they issued stop orders against Holon Investments for selling crypto funds to retail investors without proper disclosures. The message is clear: if you’re handling crypto as a service, you’re subject to the same rules as banks.

The new rules coming March 31, 2026, will expand AUSTRAC’s reach to cover every digital asset service provider - including wallets, staking platforms, and peer-to-peer facilitators. That means even if you try to build a workaround, the regulatory net will catch you.

What can Australians still do?

You’re not illegal if you own privacy coins. But you’re locked out of the mainstream system. The only way to buy or sell them now is through peer-to-peer (P2P) platforms like LocalMonero or anonymous OTC desks. These aren’t regulated. There’s no buyer protection. No chargebacks. No dispute resolution. If someone scams you, you’re on your own.

Users report price swings of up to 30% between P2P listings and exchange rates. One Reddit user in Melbourne said they paid $1,200 for 0.5 Monero on LocalMonero - a 22% premium over the global market price. Another said they waited six days for a seller to confirm a transfer, only to get scammed. The risk is real.

Some Australians turn to offshore exchanges like KuCoin or Binance (outside regulated regions). But those platforms don’t offer AUD deposits, don’t follow Australian consumer laws, and can freeze accounts without warning. There’s no legal recourse if something goes wrong.

A tense peer-to-peer crypto trade in a dark alley with cash exchange and warning signs in vintage comic art.

Why do institutions support the ban?

It’s not just regulators pushing this. The biggest institutional investors in Australia - hedge funds, family offices, superannuation funds - are all in favor. Why? Because they want to work with banks.

Banks still treat crypto as high-risk. If an exchange lists privacy coins, banks may cut off its correspondent banking relationships. That means no AUD deposits, no withdrawals, no access to traditional finance. For institutions, that’s a dealbreaker.

IDAX, one of Australia’s largest crypto platforms, found that 78% of its institutional clients supported the removal of privacy coins. One fund manager told me: “We’re not against privacy. We’re against uncertainty. If we can’t audit the flow of funds, we can’t justify it to our investors.”

How does this compare to other countries?

Australia isn’t the strictest. Japan banned privacy coins completely. Dubai has a total ban. The EU will ban them outright in July 2027. But Australia is also not the most lenient. Switzerland and Liechtenstein still allow privacy coins - but only if exchanges implement strict AML checks and report suspicious activity. Even then, they’re rare.

Most major global exchanges - Bittrex, Huobi, Kraken - have removed privacy coins everywhere, not just in Australia. That’s because compliance is cheaper than legal risk. Why run separate platforms for different countries? Just remove them globally.

Australia’s approach is middle-ground: no law says “don’t trade,” but the rules make it impossible to do so legally on licensed platforms. It’s a de facto ban - enforced by market pressure, not legislation.

A regulatory net trapping privacy coins while institutions approve, in vintage 1970s comic style.

What’s next for privacy coins in Australia?

The March 2026 expansion of AUSTRAC’s scope will formalize what’s already happening. Exchanges won’t have a choice. If they want to stay licensed, they’ll have to exclude privacy coins.

Some developers are trying to build “compliant privacy coins” - coins that hide transaction details but allow regulators to decrypt them with a key. But that defeats the purpose. If you need a government key to see the transaction, it’s not private. It’s surveillance with extra steps.

Others are exploring decentralized exchanges (DEXs) that don’t require KYC. But DEXs are still nascent in Australia. Liquidity is low. Gas fees are high. And if you use one, you’re still subject to tax reporting. The ATO doesn’t care if your transaction is hidden on-chain - they still want to know your capital gains.

For now, privacy coins in Australia exist in a gray zone: legal to hold, nearly impossible to trade, risky to access. The market has spoken - most users and institutions prefer transparency over anonymity when it comes to regulated finance.

What does this mean for you?

If you’re a casual holder: keep your coins safe, but don’t expect to cash out easily. Use a hardware wallet. Don’t trust online wallets that promise easy swaps.

If you’re a trader: accept that your options are limited. P2P is your only path - but treat it like buying a used car from a stranger. Verify identities. Use escrow. Never send funds first.

If you’re an investor: understand that this isn’t about cracking down on privacy. It’s about keeping crypto within the bounds of the traditional financial system. The future of crypto in Australia isn’t anonymity - it’s accountability.

The ban isn’t going away. Not in 2026. Not in 2027. Not unless privacy coins change their core design - and that would mean giving up what makes them valuable in the first place.

There are 9 Comments

Denise Paiva

This is the most transparent regulatory overreach I've seen since the FDA banned pickles in 2012. Privacy isn't a bug, it's a feature. If you're afraid of financial autonomy, maybe you shouldn't be in crypto. The real crime is surrendering liberty for the illusion of safety. We're not criminals because we want obscurity. We're pioneers because we refuse to be watched.

ASIC doesn't protect consumers. They protect banks from disruption. And that's not regulation. That's corporate capture dressed in a suit.
Charlotte Parker

Oh wow. So now we're criminalizing math? Zero-knowledge proofs are just… math. Ring signatures? Also math. If your regulator can't handle math, maybe they should go back to ledger books and ink pens. This isn't about crime. It's about control. And control is the only thing these bureaucrats actually care about.
Calen Adams

Let me break this down for the room: KYC/AML isn't about safety-it's about scalability. Exchanges don't want to build complex on-chain analytics pipelines. They want to plug into a bank's pre-approved sandbox. Privacy coins break that model. So they get axed. It's not ideology. It's economics. And guess what? The market's voting with its liquidity. You want privacy? Go to DEXs. You want ease? Stay on centralized platforms. Simple tradeoff.
Meenakshi Singh

LMAO 🤣 Australians banning privacy coins like it's 2012 and they're still mad about the last Bitcoin bubble. Meanwhile, the rest of the world is building ZK-rollups and confidential DeFi. You're not stopping privacy. You're just making it harder for law-abiding citizens. The criminals? They're already on Tor + Monero + cold storage. You're just punishing the polite ones. #CryptoIsNotYourBank
Kelley Ramsey

I just want to say… I’m so proud of how Australia is handling this. It’s not about taking away freedom-it’s about building a safer, more responsible ecosystem. I know it’s scary to feel locked out, but think of all the people who’ve been scammed on P2P platforms. This isn’t oppression. It’s protection. And honestly? I believe in transparency. It’s not a weakness. It’s a strength. 🌟
Michael Richardson

Australia banned privacy coins? Good. We don’t need foreign tech dictating our financial rules. If you can’t trace it, you don’t get to play. End of story. This isn’t about surveillance. It’s about sovereignty. And we’re not letting some crypto anarchists rewrite our banking laws.
Sabbra Ziro

I get why people are upset. But maybe we’re thinking about this wrong. What if privacy coins aren’t the future? What if the future is transparent, auditable, and compliant-without sacrificing security? Maybe we don’t need total anonymity. Maybe we need accountability. And maybe, just maybe, that’s not such a bad thing.
Krista Hoefle

so like… privacy coins are just… crypto for criminals? lol. i mean, if you need to hide your transactions, what are you even doing? buying weed? or are you just a normie who doesn't want their aunt to know they bought 0.3 btc? 🤡
Jessie X

I’ve held Monero since 2017. I never traded it. I just liked the tech. Now I can’t even swap it for BTC without risking my bank account. This isn’t regulation. It’s financial exclusion. And it’s happening quietly. No debate. No vote. Just a policy update on an exchange’s FAQ page. That’s how power works now.