The Australian Government Signals Its Stance On Crypto Regulation

The Australian government signals its stance on crypto regulations, by breaking a three-month silence.

Treasurer Jim Chalmers proposed a “token mapping” effort, one of 12 suggestions in a Senate inquiry report on “Australia as a Technology and Financial Center” released last year. The study was warmly received by the sector, which had been waiting with bated breath to see if the ALP administration would embrace it.

The token mapping project, which is scheduled to take place by the end of the year, is intended to assist in “determining how crypto assets and associated services should be regulated” and guide future regulatory choices.

The Australian Government Signals Its Stance On Crypto Regulation

The Treasury is rumored to be working on some of the other proposals as well, including a licensing framework for crypto asset service providers operating in non-financial product crypto assets, suitable regulations to preserve consumer crypto asset custody, and a review of the decentralized autonomous organization (DAO) company-style structure.

The administration of Prime Minister Anthony Albanese, led by Treasurer Jim Chalmers, Assistant Treasurer and Minister for Financial Services Stephen Jones, and Assistant Minister for Competition, Charities, and Treasury Andrew Leigh, declare in a statement that they seek to regulate the “mostly unregulated” crypto sector:

“As it stands, the crypto sector is largely unregulated, and we need to do some work to get the balance right so we can embrace new and innovative technologies.”

Despite the fact that over one million taxpayers have dealt with the crypto ecosystem since 2018, “regulation is trying to maintain pace and adapt with the crypto asset industry,” according to the statement.

According to the MPs, the previous Liberal-led government “dabbled” in crypto asset regulation through crypto secondary service providers “without first comprehending what was regulated:”

“The Albanese Government is taking a more serious approach to working out what is in the ecosystem and what risks need to be looked at first.”

People Also Said

“Australia punches above its weight in blockchain right now, but we have seen regulatory uncertainty lead to businesses leaving Australia,” said Michael Bacina, partner at Piper Alderman.

He further stated:

“A sensible token mapping exercise which helps regulators and policy makers understand in depth the activities they are looking to regulate and how the technology interfaces with those activities should help regulation be fit for purpose and both support innovation and jobs in Australia while protecting consumers,”

“The additional benefits of token mapping are many. It will provide greater clarity to crypto investors; aid companies in developing their own blockchain-based innovations; provide guidance to digital currency exchanges; as well as assist regulators in shaping an appropriate regulatory regime,” said Caroline Bowler, CEO of BTC Markets.

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