The Australian government plans to regulate the growing cryptocurrency sector. The country is set to review crypto assets to better understand the industry and consequently, regulate it. Anthony Albanese, the Prime Minister of the country, is planning to prioritize “token mapping”. This will help in the regulation of digital asset tokens that are operating in the country. Jim Chalmers, the Treasurer of Australia, mentioned that a consultation paper on this issue would soon be released.
The Treasurer’s Views
According to Chalmers, the first step in this process would be to identify loopholes in the licensing and regulatory framework of Australia. The process would also entail a detailed review of organizational structures and an examination of custody obligations for third-party crypto custodians. As per Chalmer, this move aims to protect and inform Australian citizens adequately in a world where crypto assets are rapidly proliferating.
Background
An Australian parliamentary committee studying the crypto industry in October 2021 revealed that one of the main problems in the regulation of cryptocurrencies was a lack of uniform definitions and classifications by regulators. Former Prime Minister Scott Morrison’s administration had intended to develop a framework for cryptocurrencies.
Caroline Bower, the chief executive officer of BTC markets, mentioned that token mapping could be beneficial as it provides better clarity to crypto investors. Moreover, token mapping helps companies develop blockchain-centric innovations and provide guidance for the exchange of digital currencies. Also, it assists regulators in building a sufficient regulatory model for cryptocurrencies in the country.
