The Australian Labor party (ALP) three months after being elected to power, has finally focused on improving the way the system manages crypto assets. Australia’s new government will soon take its stance on how it intends to approach crypto regulation.
Treasurer Jim Chalmers announced a “token mapping” exercise which was one of the 12 recommendations in a senate inquiry report last year on “Australia as a Technology and Financial Center”.
The report was well-received by the industry which has been anticipating to see if the ALP government would embrace it. The token mapping is expected to help identify crypto assets and related services that should be regulated. The move is aimed at making future regulatory decisions and providing greater protections for customers.
The token mapping exercise will be performed by the end of the year. This initiation comes shortly after the Australian Consumer Group asked for better crypto regulation in the nation.
This also suggests that the Treasury will also work on some other recommendations in the near future including licensing framework for crypto service providers. The Treasury might also focus on safeguarding the consumer crypto asset custody and review DAO company-style structure.
Treasurer Jim Chalmers and Assistance Minister for Competition, Charities, and Treasury Dr. Andrew Leigh mentioned in a joint media release the key points behind this latest development.
The press release states that the crypto sector is largely unregulated and there is a need to do some work to get the balance right so the nation can embrace new and innovative technologies.
The statement also noted that over one million taxpayers have interacted with the crypto ecosystem since 2018, and yet regulation is struggling to keep pace with the crypto asset industry. Two months ago, the Australian Mayor suggested tax payment via cryptocurrencies.
Well, the newest development which is the ‘token mapping’ exercise will be an important step to bridge the significant education gap between policymakers and regulators.
With the growing popularity of crypto assets to the extent that crypto is plastered all over big sports events, we must ensure customers engaging with crypto are adequately educated and protected, reads the report.