To propose regulation and learn more about the industry, Australia has begun a review of crypto assets in the country. According to a statement from Australia’s treasurer, Jim Chalmers, a “token mapping” is to be done by the end of this year.
“This has not been done anywhere else in the world, which will make Australia a pioneer in this initiative”, the treasurer assesses. The Australian government said it will soon release a public consultation paper on the subject in the statement.
According to Chalmers, the intent is to identify which digital asset tokens are being used in Australia and how they should be regulated. As published in The Sydney Morning Herald, the mapping involves finding out the characteristics of all digital asset tokens in Australia, tracing the type of crypto asset, underlying code, and any other technological features.
The paper published by Chalmers with Treasury assistants points out that “Australians are experiencing a digital revolution across all sectors of the economy, but regulation is struggling to keep pace and adapt to the crypto asset sector”.
Popularization of cryptos
According to the statement, the Australian Taxation Office estimates that since 2018 more than one million taxpayers have interacted with the crypto ecosystem. However, without regulation, some work must be done to “get the balance right and adopt new and innovative technologies”, according to Jim.
With the widespread proliferation of crypto assets, as in crypto advertisements at sporting events, Chalmers explains, it becomes necessary to “make sure customers engaging with crypto are adequately informed and protected”.
According to the note, the previous government had already expressed some interest in crypto asset regulation through secondary crypto service providers but, according to Chalmers, still “without first understanding what was being regulated”.
The treasurer reported that the new Labor government should first examine Australian gaps in regulatory and licensing issues. In addition, it intends to review organizational structures, analyze third-party custody of crypto assets, and propose additional consumer protection safeguards.
Last October, an Australian parliamentary committee released a report on the crypto asset industry, prompting the decision to map tokens. Among the twelve recommendations presented by the Senate was the need to address standard definitions and classifications by national and international regulators for the industry.