The Australian Treasury is looking for feedback on its most recent consultation document on token mapping, which examines cryptocurrency assets in the Australian financial services regulation context.
The government declared in August 2022 that it would take the cryptocurrency ecosystem more seriously and that “token mapping” would be a “foundational step in the government’s multi-stage reform strategy that commits to building proper regulatory settings for the crypto sector.”
The paper explains that “token mapping is the process of identifying the key activities and functions of products in the crypto ecosystem and mapping them against existing regulatory frameworks.”
It points out that token mapping is a crucial initial step in current and forthcoming initiatives for the crypto ecosystem and will: (a) provide consistency in regulating activities (i.e. be technology neutral)
(b) support current policy objectives (i.e. not require the wholesale creation and adoption of a standalone policy that may overlap or conflict with existing policy)
(c) permit responsible parties to innovate under proper regulatory supervision
According to studies cited in the report, Australia is now ranked 40th in the world for cryptocurrency adoption, and the recent turbulence and volatility in the market have increased the possibility that losses in the area could hurt the whole economy.
The government is soliciting feedback from various stakeholders regarding this paper until the 3rd of March 2023. After dealing with this consultation paper, the government intends to focus on licensing and custody changes in mid-2023, a consultation paper outlining a licensing and custody framework for crypto asset service providers will be published.
