Australia’s New Government Gives Stance On Crypto Regulation
In recent months, various jurisdictions have made their position on crypto regulation clear. However, the Australian government has been slow on crypto regulation.
Three months ago, the Labor party entered into power in Australia. Unfortunately, the government did not mention anything about crypto regulation until now.
Australia Government To Carry Out Token Mapping
According to Jim Chalmers, an Australian Treasurer, the government will carry out a “token mapping” trial. This was among the twelve recommendations given in a senate report in 2021.
The crypto industry welcomed the report and has been eager to see if the recent administration would adopt it. Meanwhile, the token mapping test will be carried out before the end of 2022. It would help to identify how to regulate crypto assets and their related services.
Also, it would make room for future regulations. According to Cointelegraph, the Australian Treasury will work on other aspects of the recommendation in the future.
This includes a framework to offer licenses to VASP providing non-financial crypto asset products. Another aspect is the protection of investors’ digital asset custody and the review of the company-style structure in DAOs (decentralized autonomous organizations).
According to Chalmers, the current government wants to provide regulations for the unregulated crypto industry.
“At the moment, the crypto industry is not regulated. We need to impose regulations before we adopt new technologies,” Chalmers stated.
According to the Treasurer, over a million taxpayers have used cryptocurrency since 2018. Unfortunately, regulation is still far behind while adoption is rising.
Other Politicians And Stakeholders Talk About The Token Mapping Exercise
Other politicians, such as Stephen Jones, the Assistant Treasurer and Andrew Leigh, the Assistant Minister for Competition, also commented on crypto regulation in Australia.
They claimed the previous administration did not have enough understanding of the crypto sector. Jones stated that they dabbled in regulating crypto via crypto service providers.
However, they noted that the current government would adopt a serious approach to assess the risk associated with the crypto sector.
Michael Bacina, a partner of Piper Alderman, said the token mapping test is very important. It would bridge the gap between policymakers and regulators. He stressed the need for crypto regulation to remove uncertainty and attract more businesses.
Furthermore, BTC Markets’ CEO, Caroline Bowler, said this token mapping would provide clarity for crypto investors. Also, it would aid firms in developing and adopting blockchain-based technologies.
Bowler added that this would help regulators shape a proper framework for crypto regulation. However, a senior lecturer at RMIT Blockchain Innovation Hub, Dr. Aaron Lane, said that token mapping is a delay tactic by the government.
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