Can You Stake Crypto in Australia? – Rules, Taxes & Best Exchanges

Cryptocurrency staking has become one of the most popular ways for investors to earn passive income. Instead of trading coins daily or holding them without rewards, staking allows you to lock your digital assets and receive interest-like returns. If you are in Australia and wondering whether crypto staking is allowed, how it works, and what the risks are, this guide will explain everything in detail.

Is Crypto Staking Legal in Australia?

Yes, you can stake crypto in Australia. The Australian government has not banned staking, and it is considered a legitimate activity. However, the Australian Securities and Investments Commission (ASIC) and the Australian Taxation Office (ATO) regulate crypto-related activities.

The ATO treats staking rewards as taxable income. This means if you earn crypto through staking, you must declare it in your annual tax return. The value of rewards is calculated at the time you receive them in Australian dollars (AUD). When you later sell those rewards, you may also need to pay capital gains tax (CGT) on any profit.

So, while staking is legal, you must follow proper tax reporting rules.

How Does Crypto Staking Work in Australia?

Crypto staking in Australia works the same way as in other countries. You lock up a certain amount of cryptocurrency in a blockchain network that uses a Proof-of-Stake (PoS) system. In return, you support the network’s operations such as transaction validation and security.

In exchange for this, you receive staking rewards. The reward rate depends on:

• The cryptocurrency you stake.
• The staking platform you use.
• The length of time your assets are locked.

For example:

• Staking Ethereum (ETH) may give returns around 3–5% per year.
• Staking Cardano (ADA) could offer 4–6% annually.
• Staking stablecoins or smaller tokens may provide different rates.

Where Can You Stake Crypto in Australia?

If you are an Australian resident, you have several options to stake crypto:

1. Crypto Exchanges

Most Australians use exchanges because they are simple and beginner-friendly. Some popular platforms include:

• Binance Australia – offers staking for ETH, ADA, BNB, and many others.
• CoinSpot – one of Australia’s most trusted exchanges with built-in staking.
• Swyftx – allows staking with flexible lock-up periods.

These platforms handle the technical process for you, so you only need to deposit coins and start staking.

2. Crypto Wallets

If you prefer more control, you can stake using wallets such as:

• Trust Wallet
• Exodus Wallet
• Ledger hardware wallet

These wallets let you stake directly from your device, but you may need more technical knowledge.

3. DeFi Platforms

For advanced users, decentralized finance (DeFi) platforms like Lido or Rocket Pool allow Ethereum staking. These platforms may offer liquid staking, meaning you can still use your funds while earning rewards.

Popular Staking Platforms in Australia

Several platforms stand out for staking in Australia, each offering unique features:

• CoinSpot: Australia’s largest exchange, CoinSpot supports staking for 21 cryptocurrencies, including ETH, ADA, and SOL, with no fees or lock-in periods. It’s beginner-friendly and secure, with APYs up to 78% for select coins.
• Binance: Offers over 600 stakeable coins, flexible and fixed-term options, and high APYs (e.g., up to 400% for Dual Asset staking). Ideal for experienced users but complex for beginners.
• Kraken: Known for simplicity, Kraken supports 11 coins like SOL and ADA, with weekly or bi-weekly payouts and APYs up to 24% (e.g., Kusama). It’s great for beginners but has fewer options than Binance.
• Crypto.com: Supports staking for 47 coins, offering up to 14.5% APY on cryptocurrencies and 10% on stablecoins like TrueAUD. Flexible and locked options are available.
• Exodus Wallet: A non-custodial wallet supporting 11 coins, ideal for users prioritizing security and control.
• Bybit: Features Bybit Earn with products like Flexi Savings and Shark Fin, offering guaranteed returns and up to 24% APY for coins like Kusama.

Comparison table of major Australian exchanges

Here’s a comprehensive comparison table of major Australian exchanges that support crypto staking, highlighting their available assets and approximate reward rates:

Benefits of Staking Crypto in Australia

Staking is attractive because it offers:

1. Passive Income – Instead of letting your coins sit idle, you earn rewards.
2. Lower Barrier to Entry – Unlike mining, staking does not require expensive hardware.
3. Support for Blockchain Networks – Your participation helps secure the network.
4. Multiple Options – With exchanges, wallets, and DeFi, Australians have flexible staking choices.

Risks of Staking Crypto in Australia

Like any investment, staking has risks. Some key risks include:

1. Market Volatility
   Even if you earn 5% staking rewards, your coin’s price could drop 30%. This makes staking risky if the market falls.
2. Lock-Up Periods
   Some staking programs require locking coins for weeks or months. If the price drops during that time, you cannot sell quickly.
3. Platform Risk
   If you use an exchange and it gets hacked or shuts down, your staked coins may be at risk.
4. Regulatory Changes
   Although staking is legal today, future regulation could affect rewards or reporting requirements.

Tax Implications of Staking Crypto in Australia

The Australian Taxation Office (ATO) treats crypto staking rewards as taxable income. This means you cannot ignore the rewards you earn, even if you don’t sell them. Here’s how the rules apply:

1. Income Tax on Rewards
   • When you receive staking rewards, you must record their market value in AUD on that day.
   • Example: If you earn 1 ADA worth $0.80 AUD on 1 June, that $0.80 is added to your taxable income.
2. Capital Gains Tax (CGT)
   • If you later sell or swap your staking rewards for another crypto or fiat, CGT applies to any profit.
   • Example: You received 1 ADA at $0.80. Months later, you sell it at $1.20. The $0.40 difference is a capital gain.
3. Compounding Rewards
   • Some platforms give rewards daily or weekly. Each reward is considered a separate income event at its AUD value at that time.
4. Record Keeping
   • The ATO requires detailed records of:
     • Date you earned rewards.
     • Value in AUD at the time.
     • Date and value when sold.
   • Many Australians use crypto tax software like Koinly, CryptoTaxCalculator, or CoinTracking to simplify this process.
5. Staking Through Exchanges vs. DeFi
   • It does not matter if you stake through CoinSpot, Swyftx, Binance AU, or DeFi platforms—the tax treatment is the same.
   • What matters is the value of rewards at the time you earn them.

Example:

• You earn 1 ETH in staking rewards worth AUD $3,500.
• You declare $3,500 as income.
• Later, if ETH rises to AUD $4,000 and you sell, the $500 gain is subject to CGT.

This means keeping good records is essential. Most exchanges provide transaction history, but you may also need crypto tax software like Koinly or CryptoTaxCalculator (both popular in Australia).

Tip: Keep a spreadsheet or use an integrated tax tool linked to your exchange so you don’t miss reporting staking rewards.

Why Staking Is Popular in Australia?

Staking’s popularity in Australia stems from its potential for high returns compared to traditional savings accounts, which offer less than 2% annually. With an average staking APY of 11% across top PoS coins, it’s a compelling option for passive income. Australia’s progressive stance on crypto, coupled with a robust ecosystem of exchanges like CoinSpot and Swyftx, makes staking accessible. However, the ATO’s data collection from exchanges (covering 1.2 million investors since 2014) underscores the need for tax compliance. Staking’s simplicity and low entry point also appeal to Australians seeking to diversify investments in a volatile market.

Future of Crypto Staking in Australia

With Ethereum’s shift to Proof-of-Stake and growing adoption of DeFi, staking will continue to expand in Australia. More exchanges are likely to offer staking options, and returns may become more competitive.

However, government regulation may tighten, especially around investor protection and taxation. Investors should stay updated with ASIC and ATO announcements.

Conclusion

Crypto staking is legal and thriving in Australia, offering a viable way to earn passive income through platforms like CoinSpot, Binance, Kraken, and non-custodial wallets like Exodus. With APYs ranging from 4-78%, staking suits both beginners and seasoned investors, though risks like market volatility, lock-up periods, and tax obligations require careful consideration.

By choosing reputable platforms, diversifying assets, and tracking taxes with tools like Crypto Tax Calculator, Australians can stake confidently. Whether you’re staking Cardano for flexibility or stablecoins for stability, understanding the process and best practices ensures you maximize rewards while navigating Australia’s crypto-friendly landscape safely.

Frequently Asked Questions (FAQ)

Is crypto staking legal in Australia?

Yes. Crypto staking is legal in Australia. However, you must comply with tax reporting rules set by the ATO.

Do I pay tax immediately when I earn staking rewards?

Yes. The ATO considers staking rewards as income at the time you receive them, even if you don’t sell them.

What happens if I don’t report staking rewards?

Failing to report can lead to ATO penalties. Since most Australian exchanges share transaction data, it is risky to skip reporting.

Which Australian exchange is best for staking?

• CoinSpot is trusted and beginner-friendly.
• Swyftx historically offered high APYs but Earn is currently paused due to regulations.
• Binance AU offers flexible and locked staking with high rewards but has regulatory uncertainty.

How can I make tax reporting easier?

Use crypto tax software (like Koinly or CryptoTaxCalculator) to sync your exchange accounts and automatically generate tax reports.

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