Michelle Legge
By Michelle LeggeHead of Crypto Tax Education
Updated Jan 17, 2025
This article has been fact checked and reviewed as per our editorial policy.

Is CoinSpot Safe?

CoinSpot is one of the most popular Australian crypto exchanges - but is CoinSpot safe? Learn about CoinSpot, its safety and security, and more in our guide.

Is CoinSpot safe?

CoinSpot exchange is generally regarded as a safe crypto exchange for Australian investors. CoinSpot Australia is ISO 27001 certified, holds most assets in offline storage, and offers customizable account-level security for users. As well as this, CoinSpot is a certified member of Blockchain Australia - an industry body helping companies follow best practices in crypto. All this said, you should always follow best security practices and keep any crypto you're not actively trading in a secure, cold wallet.

Read next: Best Australian Crypto Exchanges

What is CoinSpot?

CoinSpot is one of the most popular crypto exchanges in Australia, with more than two million Australian crypto investors using CoinSpot to buy, sell, and swap more than 380 cryptocurrencies and NFTs, either on desktop or using the CoinSpot app.

CoinSpot security features

CoinSpot employs several robust security measures to protect user assets and information:

  • ISO 27001 certification: CoinSpot has achieved ISO 27001 certification through an external audit by Sustainable Certification. This certification mandates comprehensive audits of information security management processes, covering aspects like digital asset storage and protection of sensitive information related to employees, clients, and intellectual property. These stringent policies are designed to prevent unauthorized access, use, destruction, modification, or closure of the organization's information management systems.

  • Offline storage protocols: The platform secures the majority of user assets in highly secure offline locations, adhering to industry best practices for asset protection.

  • Customizable account security: Users have access to a suite of customizable security settings, including Two-Factor Authentication (2FA), custom withdrawal restrictions, and session timeout limit settings, enhancing account security.

  • HackerOne bug bounty program: CoinSpot encourages the reporting of potential security vulnerabilities through its partnership with the HackerOne Bug Bounty Program, allowing for prompt investigation and resolution of valid issues.

Read next: What’s the Best Way to Store Crypto?

What are the pros and cons of using CoinSpot?

Pros

  • Strong security features: CoinSpot is ISO 27001 certified, uses mostly cold storage, and has customizable security settings like 2FA.

  • Ease of use: User-friendly platform, ideal for beginners with a simple interface for buying, selling, and managing cryptocurrencies.

  • Range of cryptocurrencies: Supports over 360 cryptocurrencies, offering broad market access.

  • Regulatory compliance: Registered with AUSTRAC, ensuring compliance with Australian laws.

  • Instant buy/sell feature: Allows users to trade cryptocurrencies instantly without waiting for orders to fill.

  • Staking pptions: Offers staking on certain cryptocurrencies, allowing users to earn passive income.

Cons

  • Fees: Instant Buy/Sell transactions incur a 1% fee, which is higher than some competitors.

  • Limited advanced trading features: Potentially limited for professional traders as it lacks advanced charting and analysis tools.

  • Geographic limitations: Primarily focused on the Australian market, which may limit international appeal or support for non-AUD transactions.

  • Withdrawal restrictions: Custom withdrawal limits may feel restrictive to some users, depending on their trading volume.

Yes, CoinSpot is legal in Australia. The platform operates fully within Australian laws and regulations. It is registered with the Australian Transaction Reports and Analysis Centre (AUSTRAC), which ensures compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) requirements. This registration demonstrates CoinSpot’s adherence to strict financial and regulatory standards.

Read next: What is AUSTRAC?

Does CoinSpot require KYC?

Yes, you'll need to complete KYC verification before you can buy, sell, or trade crypto on CoinSpot. CoinSpot is AUSTRAC registered and must have KYC processes in order to operate in Australia.

Does CoinSpot report to the ATO?

Yes. It's likely CoinSpot reports to the ATO. As part of a crackdown on crypto, the ATO collects records from all Designated Service Providers (DSP) of cryptocurrency based in Australia. As one of the most popular crypto exchanges, CoinSpot is almost definitely considered a DSP by the ATO and has likely faced pressure to share KYC data to ensure tax compliance.

Read next: Can the ATO Track Crypto?

Is CoinSpot linked to the ATO?

No. CoinSpot is not affiliated with the ATO. However, CoinSpot may be required to share customer data with the ATO upon request.

Read next: How to Get a CoinSpot Tax Statement

A banner with the Koinly and CoinSpot logos inviting crypto investors to connect their CoinSpot account with Koinly, a crypto tax software

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