Lawyers holding Crypto Keys: Are you a "Virtual Asset Service Provider"?
A lawyer holds a client's Ledger hardware wallet in their safe during a dispute. Another holds private keys in escrow pending settlement. Both may have just become Virtual Asset Service Providers.
The law: Section 6, Table 1, Item 46A
Table 1, Item 46A: Virtual Asset Safekeeping
"Providing a virtual asset safekeeping service"
If you hold or control virtual assets (crypto) on behalf of clients, you are providing a designated service.
The consequence: Part 6A Registration
This is not just standard Tranche 2 enrolment. Virtual asset service providers must obtain Part 6A Registration - a significantly higher compliance burden including:
- Fit and proper person requirements
- Enhanced supervision by AUSTRAC
- Additional fees and audit requirements
- Ongoing registration conditions
Key Takeaway
Section 6, Table 1, Item 46A catches "virtual asset safekeeping." If you hold crypto keys, hardware wallets, or control virtual assets for clients, you may trigger Part 6A Registration - not just standard enrolment. Review your escrow and custody arrangements immediately.
Read our complete Tranche 2 Guide
Key dates, affected sectors, obligations and how to prepare
Disclaimer: This article is general information only. It is not legal, financial or compliance advice. HeadStart Docs™ provides free compliance documents, not legal services.
We do not guarantee the accuracy of information provided. Obligations may apply depending on your designated services. Always confirm your specific requirements with a qualified adviser.
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