6 things to check to ensure your crypto platform is legit (and not a scam)
With so many operators in the crypto space, it's important to be aware of potential red flags. But what about some of the green flags, too?
Sponsored by Kraken. With Kraken PRO, you can buy more than 350 crypto assets and gain access to advanced trading strategies.
Each year thousands of Australians are scammed out of their hard earned cash after signing up to fake trading platforms.
In 2024 alone, Australians lost over $180 million of cryptocurrency in investment scams, with most under the age of 50.
Many of these scams are incredibly sophisticated, showcasing slick platforms, glowing customer reviews and a team of experienced investment experts.
While there's no official register of legitimate exchanges in Australia, there are a few things you can check to make sure your platform is well established (least of all a scam).
1. AUSTRAC registration
Crypto platforms operating in Australia need to be registered with Australia's financial intelligence agency AUSTRAC.
This means abiding by anti-money laundering and counter terrorism rules and being subject to audits and compliance reviews by Australian authorities.
While not all legit global exchanges hold AUSTRAC registration, signing up to a platform that does means you have greater protection against scams and fraud under Australian law.
It's not always easy to find, but you can typically find an exchange's registration number in the legal section on its website.
Kraken Australia
2. Data protection certification
Legitimate crypto exchanges often hold additional certifications that show they take customer protection and security seriously.
Some of the main ones to look for include ISO 27001 certification, SOC 2 (Type II).
These certifications show that a crypto exchange has been independently audited against international security and data-protection standards.
While exchanges aren't required to have these, it's a sign the platform is established and taking customer protection seriously.
Kraken is one of just a few exchanges that hold both certificates, covering global and US compliance standards.
3. AFS license (AFSL)
Crypto exchanges in Australia aren't yet required to hold one of these, but this is changing soon.
An AFSL is basically a license from Australia's main financial regulator ASIC (Australian Securities and Investment Commission).
Once enforced, it means crypto businesses will be held to same strict compliance and reporting rules as other financial services providers such as share trading platforms, forex brokers and superfunds.
Only a handful of crypto platforms already hold an AFSL and these are typically for non-crypto specific products.
For instance, Kraken holds an AFSL for its futures trading platform.
However, this will become more important over time, and it's a sign Kraken and others with AFSLs are ahead of the curve.
4. Customer reviews and media mentions
Check if the platform you're signing up for has any customer reviews and is covered by legit publications.
Scam sites often feature fake testimonials and fabricated social proof, so make sure to look at established sites like Finder’s crypto exchange reviews, Trustpilot, or ProductReview.
But even news can be faked (just ask Trump), so look at credible and well known media outlets for any mentions of the platform.
Well established crypto platforms will also normally have a strong social media presence, often on offical X or Reddit.
5. Australian headquarters
Not all global exchanges have an office in Australia, but it's a good trust signal if they do.
If you can’t find an Australian address or if all contact information routes through overseas numbers, proceed with caution.
Locally based platforms also tend to offer faster AUD deposits and withdrawals, PayID support, and local customer service if things go wrong.
Legitimate crypto exchanges are transparent about who they are, where they operate and how they’re regulated. If you can’t easily verify those things, don’t send them your money.
6. MoneySmart's investor alert list
As a final check, make sure the platform you're signing up to doesn't appear on MoneySmart's alert list.
It's a list of companies that are banned from operating in Australia or considered high risk by ASIC.
That being said, not all scam companies will appear on this list. Make sure it's one of several checks you make before opening an account.
Learn more about investing with Kraken today
Compare other products
We currently don't have that product, but here are others to consider:
How we picked these