Australians can still own privacy coins like Monero, Zcash, and Dash - but if you're trying to trade them on a local exchange, you're out of luck. Since early 2025, every major Australian crypto platform has removed these assets from their listings. It’s not a law that says you can’t hold them. It’s not even a formal ban. But the practical effect? For most people, privacy coins are effectively gone from the Australian crypto scene.
Why Are Privacy Coins Being Removed?
Privacy coins are built to hide transaction details. Monero uses ring signatures and stealth addresses. Zcash uses zero-knowledge proofs. These tools make it impossible for outsiders to see who sent money, who received it, or how much was transferred. That’s great if you value financial privacy. It’s a nightmare for regulators. Australia’s financial watchdogs - ASIC and AUSTRAC - don’t want exchanges handling assets they can’t trace. Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, digital currency exchanges must know who their customers are and monitor every transaction. Privacy coins break that rule. If a user sends Monero to an unknown wallet, the exchange can’t prove it wasn’t used for illegal activity. And if they can’t prove it, they risk fines, license cancellation, or even criminal charges. The pressure isn’t just local. Global exchanges like Binance, Kraken, and Poloniex pulled privacy coins from their platforms in early 2025. The U.S. Treasury Department flagged Monero as a high-risk asset. The EU is set to ban them entirely by July 2027. Australia didn’t act alone - it followed the pack.What Does the Law Actually Say?
There’s no Australian law that says “privacy coins are illegal.” You can buy Monero on a peer-to-peer platform. You can store it in a hardware wallet. You can even send it to someone overseas. The restriction only applies to licensed exchanges. AUSTRAC requires all digital currency exchange providers to register and comply with strict customer verification rules. If an exchange offers privacy coins, it can’t meet those rules. So instead of fighting the regulator, exchanges simply removed them. It’s easier than building a compliance system that can’t exist. Starting March 31, 2026, AUSTRAC’s rules will expand to cover every digital asset service provider - not just exchanges. That includes wallet providers, custodians, and even some DeFi platforms. This move will make it even harder for any Australian company to offer privacy coins without breaking the law.How Did This Affect Australian Users?
For everyday users, the impact is real. If you used to trade Zcash on Independent Digital Assets Exchange (IDAX) or CoinSpot, you can’t anymore. Your balance is still there - but you can’t sell it, swap it, or cash out through the platform. You’re stuck. Some users turned to peer-to-peer (P2P) markets like LocalMonero. Activity there jumped 19% after centralized exchanges dropped privacy coins. But P2P trading comes with risks. You’re dealing with strangers. There’s no buyer protection. Scams are common. And if you get caught doing large trades without proper ID, you could still trigger AUSTRAC’s monitoring systems. Institutional investors, on the other hand, mostly supported the move. Hedge funds and family offices that want to enter the Australian crypto market saw privacy coins as a liability. Removing them made the ecosystem look more “bankable.” That’s why institutional adoption of Bitcoin and Ethereum has grown faster in Australia since the ban.
How Does Australia Compare to Other Countries?
Australia’s approach is middle-ground. Japan banned privacy coins outright in 2018. Dubai completely shut them down. The EU is preparing a full ban in 2027. But places like Switzerland and Liechtenstein still allow privacy coins - as long as exchanges do full KYC and monitor transactions as best they can. Australia didn’t go as far as Japan. But it also didn’t leave room for compliance like Switzerland. Instead, it let market forces do the work. Exchanges chose to remove privacy coins because it was easier than trying to comply. The result? A de facto ban without the political fallout of a legislative move. Even major global platforms like Binance and Kraken pulled privacy coins from their U.S. and Canadian platforms around the same time. So Australia isn’t an outlier - it’s part of a global trend. Over 70 exchanges worldwide dropped privacy coins in 2025 alone.What About the Technology? Can It Be Fixed?
Some developers argue privacy coins could be modified to meet regulatory demands. For example, Zcash could offer a “compliant mode” where users voluntarily reveal transaction details to authorities. But that defeats the whole point. If you’re using Zcash to hide your transactions, you won’t want to turn on a backdoor. The U.S. Internal Revenue Service even offered $625,000 in bounties to anyone who could break Monero’s privacy. So far, no one has. The technology is too strong. That’s why regulators give up - they can’t monitor what they can’t see. That’s the core conflict: privacy coins were designed to be untraceable. Regulators need traceability. There’s no middle ground that satisfies both.
What’s Next for Privacy Coins in Australia?
The March 2026 expansion of AUSTRAC’s rules will lock in today’s restrictions. After that, any Australian company offering privacy coin services will be breaking the law - not just violating internal policies. Some users will keep using P2P platforms. Others will use offshore exchanges. But those options come with no consumer protection. If an overseas exchange gets hacked or shuts down, you have no legal recourse under Australian law. For now, privacy coins exist in a legal gray zone: owned by individuals, banned from exchanges. That’s not a sustainable long-term model. Either regulators will find a way to accept privacy tech with oversight - or privacy coins will fade out of the Australian market entirely.Can You Still Buy Privacy Coins Legally in Australia?
Yes - but not easily. You can buy Monero or Zcash through international P2P platforms like LocalMonero or Bisq. You can use a non-Australian exchange like KuCoin or Gate.io, but you’ll need to manage your own wallet and handle tax reporting yourself. You won’t get any help from Australian consumer laws if something goes wrong. You can also buy Bitcoin or Ethereum on a local exchange, then swap it for privacy coins on a decentralized exchange (DEX) like Uniswap or PancakeSwap. But DEXs don’t offer AUD pairs. You’ll need to use a bridge or convert through another crypto first. It’s messy. It’s slow. And it’s not beginner-friendly.What Should You Do If You Own Privacy Coins?
If you already hold privacy coins on an Australian exchange, check your balance. You can’t trade them - but you can withdraw them to your own wallet. Don’t leave them on the exchange. If the platform shuts down or gets shut down by regulators, you could lose access. Keep records of how and when you bought them. The ATO is watching. Even though privacy coins are untraceable on-chain, the moment you bought them on an Australian exchange is documented. If you later sell them for profit, you owe capital gains tax. Don’t try to hide your holdings. The ATO has tools to track crypto activity across exchanges, even if the coins themselves are private. If you’re audited, you’ll need to prove you paid tax on gains.Are privacy coins illegal in Australia?
No, privacy coins like Monero and Zcash are not illegal to own in Australia. The ban only applies to licensed cryptocurrency exchanges, which are prohibited from listing or trading them. Individuals can still buy, hold, and send privacy coins through peer-to-peer platforms or overseas exchanges.
Why did Australian exchanges remove privacy coins?
Australian exchanges removed privacy coins because they can’t comply with AUSTRAC’s anti-money laundering rules. Privacy coins hide transaction details - making it impossible to track who sent or received funds. Since exchanges must verify users and monitor activity, offering privacy coins puts them at risk of regulatory penalties or license cancellation.
Can I still trade privacy coins on Australian platforms?
No. All major Australian exchanges, including CoinSpot, Independent Digital Assets Exchange, and others, removed privacy coins from their platforms in 2025. You cannot buy, sell, or swap Monero, Zcash, or Dash on any licensed Australian crypto exchange.
What happens if I use a foreign exchange to trade privacy coins?
You can use foreign exchanges, but you lose all Australian consumer protections. If the exchange gets hacked, freezes your funds, or shuts down, you have no legal recourse. You’re also responsible for reporting any gains to the ATO - even if the transactions are private on the blockchain.
Will Australia ever allow privacy coins again?
It’s unlikely unless privacy coins change their technology to allow regulatory oversight. Right now, the core feature of these coins - total anonymity - directly conflicts with Australia’s financial laws. Until that changes, exchanges will continue to avoid them to stay compliant.
Comments
2 Comments
Meenakshi Singh
So now we’re just pretending privacy doesn’t matter? 🤦♀️ Monero’s been around longer than most of these exchanges. If you can’t handle real financial freedom, don’t blame the tech. #PrivacyIsAFundamentalRight
Frank Heili
The real issue isn’t privacy coins-it’s the regulatory overreach. Exchanges removed them because compliance is expensive and risky, not because the tech is dangerous. This is a business decision dressed up as public safety. If you want traceability, build it into the protocol-not ban the whole category.
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