The Treasurer of Australia, Jim Chalmers, has announced that his government plans to enhance the regulation of crypto assets and offer greater consumer protection. One key initiative mentioned is a token mapping exercise proposed as part of a Senate inquiry report from 2021.
This mapping effort will be carried out this year and aims to inform future regulatory decisions. Additionally, the Treasury intends to address other recommendations, such as establishing a licensing framework for crypto asset service providers dealing in non-financial products, ensuring appropriate safeguards for consumer crypto asset custody, and reviewing decentralized autonomous organization (DAO) structures.
The government’s goal is to regulate an industry that has seen substantial growth but remains largely unregulated. The approach seeks to balance embracing new technologies with effective regulatory oversight.
Industry Interaction
Over one million taxpayers have engaged with the crypto ecosystem since 2018, highlighting a need for better regulation. The previous government faced criticism for its lack of understanding and inadequate regulation of the crypto market.
The new Treasury’s strategy is to first gain a comprehensive understanding of the sector before implementing any regulations. This approach aims to address risks more effectively by prioritizing them.
According to representatives, this token mapping exercise will play a crucial role in bridging the knowledge gap between regulators and policymakers. It should result in more fitting regulations that support innovation and job creation while protecting consumers.
Opinions on Token Mapping
Caroline Bowler, CEO of BTC Markets, sees potential benefits from this exercise. She believes it can provide clarity for crypto investors, aid companies in developing blockchain-based innovations, assist digital currency exchanges, and guide regulators in crafting an appropriate regulatory framework.
On the other hand, some critics argue that the mapping exercise is merely a means to delay action by the Labor government, allowing them time to familiarize themselves with the industry before taking decisive steps.
