- The Australian Labor Party (ALP) is finally approaching crypto regulation through a “token mapping” exercise.
- The Government believes token mapping will help “identify how crypto assets and related services should be regulated”.
- The Treasury will also work on future recommendations involving licensing frameworks for crypto service providers, DAOs & more.
After three months as state head, the new Australian Government now featuring the Australian Labor Party as the leader has announced work towards crypto assets regulation in the country to balance a “largely unregulated” crypto sector and “embrace new & innovative technologies.”
Once part of the 12 recommendations in a senate inquiry report from 2021 on “Australia as a Technology and Financial Center,” token mapping is now the standard exercise the ALP Government has decided to follow, according to Treasurer Jim Chalmers.
Via Token Mapping, the Albanese Government expects to “identify how crypto assets and related services should be regulated” and assist future regulatory decisions. Noting over 1M taxpayers in the crypto space, the new regime is looking at risks involved in the ecosystem first.
Moreover, the Treasury also plans to work on other recommendations in the future, including measures to safeguard the consumer crypto asset custody, a licensing framework for crypto asset service providers dealing in non-financial product crypto assets, and a DAO company-style structure review.
Partner at Piper Alderman, Michael Bacina feels Australia is thriving in blockchain currently but uncertain regulation is resulting in business loss. He says the token mapping exercise will help regulators and policymakers understand the technology and activities, and develop regulations that support jobs and innovation and protects consumers in Australia.
In addition, CEO of BTC Markets, Caroline Bowler mentioned token mapping would bring “proportional, appropriate regulation” to the industry, greater clarity to the investors, and direction to digital currency exchanges.
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