• Australia wants to regulate cryptos more tightly
• Token mapping should be created
• Down Under as a pioneer
Australia is considered a crypto-friendly country. Accordingly, crypto activities Down Under have increased significantly, which is why the country’s government now feels compelled to develop a regulatory framework. “Australians are witnessing a digital revolution across all sectors of the economy, but regulation is struggling to keep up and adapt with the crypto-asset sector,” said Australian Treasurer Jim Chalmers recently.
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Token mapping as the first step
In a first step towards regulating the crypto ecosystem, the Australian government is planning a kind of crypto map. As part of the so-called token mapping, properties and possible uses for cryptocurrencies are to be compiled in order to be able to draw conclusions about possible regulations.
The process is intended to determine which crypto assets are already regulated by financial services law and which digital currencies still require corresponding regulatory legislation.
According to Chambers, the previous government skipped this step: “The previous government tried to regulate crypto assets, but prematurely jumped directly to options without first understanding what was being regulated”. Therefore, the new government, which has been in office for three months, now wants to take a more serious approach to finding out what is in the ecosystem and what risks need to be considered first.” He further explained: “The aim will be to close notable gaps in the regulatory framework identify, advance work on a licensing framework, review innovative organizational structures, review record-keeping requirements for third-party custodians of crypto-assets, and provide additional consumer protections.”
Australia as a pioneer
Australia is the first country in the world dedicated to token mapping. BTC Markets CEO Caroline Bowler welcomes the Australian government’s move. She told Bloomberg, “The benefits of token mapping are many. It will bring clarity to crypto investors, help companies develop their own blockchain-based innovations, provide guidance to crypto traders, and help regulators support the design of an appropriate regulatory system”.
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