The new Australian government aims to pass regulations that will make the country a leader in crypto-related tech.
A statement released by Australia's new government under the leadership of Prime Minister Anthony Albanese promises to review how cryptocurrency assets are managed.
Australian Treasurer Jim Chalmers said that the country would prioritize consumer protection and keeping practices up to date. It would engage in "token mapping" to get a better overview of the digital assets market. This is to identify how assets should be regulated and to "make Australia leaders in this work."
Chalmers said:
“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 while safeguarding consumers.
With the increasingly widespread proliferation of crypto assets — to the extent that crypto advertisements can be seen plastered all over big sporting events — we need to make sure customers engaging with crypto are adequately informed and protected."
Token mapping would involve charting the type of digital asset, its code and defining technological features. In other words, it would be an exercise in categorizing crypto assets.
According to a statement made to CoinDesk, Holger Arians, CEO of Banxa, an Australia-based fiat to crypto exchange, the industry welcomes the government's "innovative approach" but hopes for ongoing close collaboration in light of a quickly evolving space.
However, the new government prides itself on taking proactive measures and distances itself from previous heavy-handed approaches to the space:
"The previous government dabbled in crypto asset regulation but prematurely jumped straight to options without first understanding what was being regulated. The Albanese Government is taking a more serious approach to work out what is in the ecosystem and what risks need to be looked at first."
There is still no timeline for the implementation of the token mapping process.
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