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    We picked the most highly specialised and talented lawyers

    Cryptocurrency has seen increasingly unpredictable and strong growth since 2016, turning previously unsophisticated investors into millionaires and sometimes billionaires.

    With many new businesses and investors, there is a web of legal issues involved with trading in cryptocurrency. Whatever business action you want to take, Chamberlains’ experienced lawyers can advise you on the safest and most commercially-viable path.

    Stipe Vuleta

    Managing Director

    Sam Keys-Asgill

    Associate

    Our process

    01Initial Consultation

    We begin with a detailed discussion to understand your business objectives and the nature of your cryptocurrency transactions. This step allows us to identify compliance requirements and potential risks under Australian law.

    02Regulatory Review & Strategy Development

    Our team examines your transaction structure, smart contracts, and any associated agreements to ensure compliance with financial services regulations, tax obligations, and anti-money laundering laws. We then develop a tailored strategy to protect your business.

    03Formal Engagement

    Once you approve the proposed approach, we formalize our engagement by outlining the scope of work, timelines, and fees. This step ensures transparency and gives you confidence that your crypto transactions are legally sound.

    04Implementation & Transaction Support

    We assist with drafting and reviewing agreements, advising on token issuance, and ensuring your transactions meet regulatory standards. Our team also provides guidance on cross-border transfers and digital asset custody arrangements.

    05Ongoing Compliance & Risk Management

    Cryptocurrency regulations evolve rapidly. We provide ongoing advice to help your business stay compliant, manage risks, and adapt to legislative changes, ensuring your operations remain secure and future-proof.

    Our services

    01 Structuring & Regulatory Classification

    Initial Assessment & Framework Mapping

    We begin by classifying your token or digital asset under applicable regimes (financial product, utility token, payment instrument, or non-financial digital property), referencing legislative tests, regulator guidance, and case law. We produce a clear matrix mapping functions and rights to likely classifications and compliance pathways, reducing risk from the outset.

    Whitepaper, Disclosures & Governance

    Our team drafts or reviews whitepapers and offer documents, ensuring balanced disclosures on rights, risks, tokenomics, vesting, and governance. We align communications with consumer law and financial services obligations, including fair marketing standards, disclaimers, and risk factors to prevent misleading conduct.

    Jurisdiction & Cross-Border Considerations

    We identify jurisdictions for issuance, exchange listing, and custody, addressing licensing triggers, travel rules, advertising restrictions, and tax implications. Where multi-jurisdiction operations are planned, we coordinate local counsel and harmonise documentation to avoid regulatory arbitrage pitfalls.

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    Financial Services & Exchange Licensing

    We advise on licensing for exchanges, brokers, custodians, payment services, staking-as-a-service, and market-making. Applications are supported by compliance manuals, risk registers, fit-and-proper materials, and capital/solvency documentation tailored to the regulator’s expectations.

    AML/CTF, KYT & Sanctions Controls

    We design proportionate AML/CTF programs incorporating KYC and KYT tools, enhanced due diligence, travel rule compliance, sanctions screening, and suspicious matter reporting. Procedures are calibrated to product risk (NFTs, privacy coins, stablecoins) and customer profiles to satisfy obligations without throttling growth.

    Ongoing Compliance & Audit Readiness

    We implement compliance calendars, incident logs, breach reporting plans, and internal audit frameworks. Training, attestations, and board reporting cycles are embedded to demonstrate culture-of-compliance, supported by playbooks for regulator engagement and thematic reviews.

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    Stablecoin Structures & Reserve Assurance

    We advise on fiat-backed, commodity-backed, and algorithmic stablecoins, addressing reserve attestations, custody arrangements, redemption policies, and disclosure standards. Documentation is aligned to audit readiness and crisis management to protect holders and issuer integrity.

    Custody, Safekeeping & Segregation

    Custody agreements define segregation of client assets, key management (MPC/HSM), disaster recovery, access controls, and liability allocation. We incorporate transparency measures, proof-of-reserves, reconciliation, and incident protocols, so institutional clients can trust operational resilience.

    Treasury, Staking & Yield Programs

    We document staking, lending, and yield products with clear risk disclosures, reward calculations, slashing exposure, and withdrawal rules. Contracts balance commercial flexibility with regulatory thresholds to preserve compliant revenue streams.

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    Entity Setup & Jurisdiction Strategy

    We establish fit-for-purpose structures for exchanges, funds, DAOs, and service providers, considering substance requirements, director residency, and cross-border tax outcomes. Governance documents define decision rights, conflicts management, and reporting lines to support scale.

    Tax Treatment & Record-Keeping

    We clarify the tax treatment of disposals, staking rewards, airdrops, mining, liquidity provision, and NFT transactions. Processes are set for cost base tracking, fair value measurement, and audit support, integrating with accounting standards and forensic needs.

    Employee & Founder Token Arrangements

    We draft employee token plans, founder vesting, and advisor grants with cliff triggers, bad leaver provisions, and tax-efficient mechanisms. Documentation ensures compliance with employment law, securities restrictions, and disclosure rules.

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    Regulatory Submissions & Consultations

    We prepare responses to consultation papers, policy proposals, and rule changes impacting digital assets. Submissions are evidence-based, balancing innovation and consumer protection, and include industry data and comparative analysis to influence outcomes.

    Investigations, Notices & Enforcements

    We manage information notices, compelled production, and investigations, ensuring calibrated cooperation and legal privilege protection. Strategy includes narrative framing, remediation plans, and undertakings that mitigate penalty exposure.

    Crisis Communication & Reputation Management

    Where incidents attract public attention, we coordinate legal and communications workstreams: holding statements, Q&A, regulator briefings, and stakeholder updates. Our approach prioritises accuracy, privacy, and alignment with ongoing legal steps.

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    Steady, Practical Guidance for Digital Asset Builders, Investors & Platforms

    Crypto markets move fast, and risks can escalate even faster. Decisions around token design, exchange operations, custody, and compliance affect customers, partners, and regulators. When you’re ready to explore your options, you need a legal team that understands the technology, protects your privacy, and moves at your pace. We start by clarifying your goals, whether that’s launching a compliant product, engaging with regulators, or safeguarding treasury and customer assets.

    We translate complex crypto rules and technical issues into a step-by-step plan: what evidence helps (on-chain data, contracts, attestations), how statements are prepared, who will be involved (auditors, custodians, exchanges, analytics teams), and how we’ll minimise operational disruption. Every conversation is plain English and consent-based. You control the speed and scope; we handle the heavy lifting discreetly and respectfully.

    What Cryptocurrency Law Involves

    Crypto law spans token structuring, licensing, AML/CTF programs, custody and stablecoin governance, and regulator engagement. It requires disciplined evidence gathering (blockchain analytics, contractual records, technical logs), careful valuation of exposure (asset movements, downtime, customer impacts), and sensitive negotiation designed to reach fair outcomes without unnecessary confrontation. Where parallel processes exist, such as regulatory reviews or criminal investigations, we coordinate pathways so rights are protected and business continuity remains front of mind.

    We tailor pathways: some clients prefer confidential, structured settlements; others seek formal rulings or public acknowledgements; many want practical solutions that restore operations and trust. We explain timeframes, decision points, costs, and likely outcomes upfront, and we aim to keep the legal burden as light as possible while protecting your rights.

    Minimising Risk, Cost, and Operational Strain

    Legal processes can feel overwhelming in a technical environment. We reduce stress with an industry-aware workflow: short, focused meetings; clear agendas; permission-based questioning; and written summaries so you never feel lost. We sequence actions to prevent duplication, collecting records once, leveraging analytics across workstreams, and aligning expert reports to evidentiary needs.

    Costs are kept proportionate with early negotiation strategies, practical settlement ranges, and alternative resolution methods (mediation, conference) before any court step. Where litigation is required, we use targeted pleadings, tailored evidence, and protective applications to minimise exposure and delay.

    Client Care with Human-Centred Support

    You will have a dedicated contact who coordinates experts, deadlines, and communications, so you don’t have to repeat your story. We adopt confidentiality protocols (secure channels, limited distribution lists, “need to know” access), and offer referrals to analytics providers, auditors, cyber specialists, and financial advisors where relevant. We are empathetic but frank: we’ll clarify prospects of success, realistic outcome ranges, and factors that can affect timing, so you make decisions with clear expectations.

    Key Things to Know

    • You set the pace: We follow your comfort level and preferred communication style.
    • Evidence builds fairness: On-chain analysis, contracts, attestations, and witness statements quantify issues.
    • Multiple pathways exist: Licensing, compliance programs, and regulatory engagement can be combined.
    • Privacy is paramount: We manage confidentiality, media, and third-party contact with strict protocols.
    • Support is integral: We can coordinate services that help you through the process, not just the legal steps.

    Secure Confidence in Crypto Matters

    You deserve clarity, respect, and practical support. With Chamberlains, you’ll have a steady team that protects your privacy, manages complexity, and pursues outcomes that reflect both technical reality and commercial goals. We move at your pace, keep communication grounded, and design a pathway that minimises stress while maximising fairness.

    Book a confidential consultation with our Cryptocurrency Law team to explore your options now, because your products, your customers, and your rights deserve protection. We’re with you.

    Call us at +61 2 9264 9111
    Email us at hello@chamberlains.com.au

    FAQ

    01What is a Crypto Airdrop?

    For new cryptocurrency, it can be difficult to convince consumers to use or purchase a coin in its early stages. With no publicity, followers, or trading volume, new projects need to find innovative ways to market the currency in order to reach the consumers. Airdrops is one common tool to do this.

    One way to promote coins and increase uptake is through airdrops, where a consumer receives free coins or tokens ‘airdropped’ into their crypto wallet. Blockchain based projects like to use airdropping as a marketing tool to promote awareness and engage consumers, helping build the early value in their token and increasing the overall supply.

    An airdrop involves sending a small amount of a new coin to targeted members of a selected blockchain platform. To qualify, the wallet holder may need to hold a minimum amount of a certain coin and they may even be given multiple Airdrops if their wallet remains above a minimum balance for a sustained period. Some Airdrops may require the receiver to perform a task, such as a social media post, to qualify for the crypto drop.

    Airdrops have the potential to provide real value to a consumer. In 2020, Uniswap released a native coin, UNI, by dropping it into the accounts of all users on its platform that had made at least 1 trade prior to a certain date. The coin initially traded for between $2-$4 USD before rising to $30USD in April 2020, netting those who had received the airdropped tokens $12,000 USD.

    There are a number of ways to reduce your CGT. Offsetting capital gains with capital losses, obtaining the CGT discount by holding the crypto for more than 12 months and consider holding cryptocurrency in a company or discretionary trust can help to reduce your CGT cost. The 12-month rule is useful for all longer-term investors, as it gives asset holders a 50% discount on capital gains when they dispose of an asset, provided they have held the asset for at least 12 months.

    Some investors will benefit from using structures for both long and short-term investing in cryptocurrency. There are particular legal issues with trusts and companies controlling wallets and a lawyer familiar with cryptocurrency issues is needed. The ATO has cryptocurrency in their sights this year, and in particular, the ATO announced a data matching program for cryptocurrency exchanges. Australian crypto exchanges will be required to provide data to the ATO to assist the ATO to identify taxpayers who may be underreporting or not reporting their cryptocurrency gains properly.

    There are a variety of businesses that are operating using cryptocurrency and NFT’s. Many entrepreneurs are pushing new ways to generate income from this unique area, such as play-to-earn gaming (P2E) businesses, bot trading strategies, launching non-fungible token (NFT) collections and infinite other possibilities.

    Currently, many people are making significant money operating P2E guilds for Axie Infinity and other blockchain games – it is essential for these businesses to be structured just like any business for tax efficiency and asset protection.

    These businesses do not fit neatly within the Australian tax system. Special care is needed to structure them to be tax-efficient and not get a nasty surprise with the impending ATO crackdown on cryptocurrency.

    On-chain analytics, contracts, disclosures, technical logs, and witness statements strengthen matters.

    Yes, limitation periods and regulatory deadlines apply, with limited extension routes in specific contexts.

    Not always; many issues resolve through negotiation, mediation, or regulator-led outcomes without litigation.

    Often yes; we use tracing tools, court orders, and platform/regulator engagement to progress recovery.

    You may still have options; seek advice early to confirm limitation positions and evidence preservation.

    Only where rules require or strategy benefits; we support either path and manage parallel processes.

    Licensing can take weeks to months; disputes and recoveries vary by complexity and cooperation.

    Analytics, audit, cyber, and financial support can be integrated with legal steps to reduce disruption.

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