Governing body Hockey Australia (HA) said Craig's ban started on Monday and followed an investigation by its integrity unit into his arrest last month.
"Six months of this suspension will be served fully, with the remaining six months fully suspended, contingent upon meeting conduct and behavioural requirements," HA said in a statement.
Additionally, Craig is required to complete mandatory training and education programmes, the governing body said.
Though banned from competition, HA said Craig would remain eligible for selection for the 2025 national squad which is expected to be announced at the end of the year.
Craig apologised to his family and teammates after being released from police custody in Paris with a warning and promptly moved out of the athletes' village.
The 29-year-old has played over 100 games for Australia and was a member of the team that won the men's silver at the Tokyo Olympics.
