The characteristics of all digital assets in Australia would be identified by grouping the type of cryptocurrencies, their underlying code, etc.
Australia has for the past couple of years witnessed an unprecedented growth of crypto assets outpacing the control of authorities. According to a poll conducted last year, the likes of Ethereum, Dogecoin, Shiba Inu, and Binance Coin are among the most popular coins in the country while they develop an appetite for some emerging ones. In response to this, Australia’s new government, led by Prime Minister Anthony Albanese has taken steps to formulate up-to-date measures to protect consumers.
As part of its effort to regulate the industry, Australian Treasurer Jim Chalmers disclosed that the country would make use of “Token Mapping” to understand how digital assets, as well as their accompanying services, should be regulated. According to him, this is the first of its kind in the entire world.
With this method, the characteristics of all digital assets in Australia would be identified by grouping the type of cryptocurrencies, their underlying code, etc.
“With the increasingly widespread proliferation of crypto assets – to the extent that crypto advertisements can be seen plastered all over big sporting events – we need to make sure customers engaging with crypto are adequately informed and protected,” said Chalmers.
This decision has been welcomed by several key players in the crypto industry including Holger Arians, CEO of Banxa, a crypto exchange based in Australia. Ariana admitted that Token Mapping is a step in the right direction. However, authorities must collaborate with the industry to come out with the right regulatory framework.
Chalmers in his statement disclosed that the government plans to release a consultation paper about a regulatory framework with the industry before the completion of the mapping. The government has also planned to take a closer look at the risk, and take a more serious approach to regulate the industry.
“The aim will be to identify notable gaps in the regulatory framework, progress work on a licensing framework, review innovative organizational structures, look at custody obligations for third-party custodians of crypto assets and provide additional consumer safeguards,” added Chalmers.
Taking a dig at the previous labor administration led by Scott Morrison, Chalmers stated that they did consider crypto asset regulation, however, they had no clear understanding of what was being regulated before taking decisions.
As part of the statement, he mentioned that the crypto market is largely unregulated, so the regulation must be balanced enough to accept new technologies and innovation while protecting consumers.
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