cryptoknowmics.com
The Australian Labor Party recently outlined its plans for cryptocurrency legislation three months after being voted to office. An inquiry report from the Senate last year on "Australia as a Technology and Financial Center" included a suggestion from one of the 12 recommendations given by Treasurer Jim Chalmers on "token mapping." The sector enthusiastically embraced the report, which had been anxiously awaiting the ALP government's decision.
Token Mapping
Before the end of the year, a token mapping should help "establish the regulation of crypto assets and related services" and assist in future regulatory actions. In the near future, Treasury will also review the other recommendations, including regulating firms offering non-financial product crypto assets, safeguarding consumer crypto asset custody with appropriate requirements, and reviewing the structure of decentralized autonomous organizations (DAOs). In a statement from Minister for Financial Services Stephen Jones, Treasurer Jim Chalmers, Assistant Treasurer, and Assistant Minister for Competition, Charities and Treasury Andrew Leigh, the government led by Prime Minister Anthony Albanese claims it intends to control a "largely unregulated" cryptocurrency 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." "The Albanian government is taking a more serious approach to figuring out what’s in the ecosystem and what risks should be looked at first."
Other Advantages Of Token Mapping
According to Michael Bacina, partner at Piper Alderman, the token mapping project will be an "important step" in narrowing the immense education gap between the policymakers and regulators. He further stated,
"A sensible token mapping exercise that will help regulators and policymakers understand the activities they want to regulate and how the technology interfaces with those activities help make regulation fit and support both innovation and jobs in Australia while protecting consumers."
The CEO of BTC Markets, Caroline Bowler, thinks the move echoes calls from many industry professionals for a "proportional regulation" of the sector. Bowler remarked,
"The additional benefits of token mapping are many. It will bring clarity to crypto investors, help companies develop their own blockchain-based innovations, provide guidance for digital currency exchanges, and help regulators shape an appropriate regulatory regime."